Capitalisation

A/c entries 1707 views 16 replies

Gireesh.kallerikkarammal

Accountant

36 Points Joined January 2008

I bought one new printer for office use and passesd payment entry of,

Printing & stationery a/c Dr

To Cash.A/c.

what would be the capitalisation entry. is there any depreciation to be charged.

Replies (16)

Manoj Mehta

Head Of Department (Accounts & Finance)

1479 Points Joined March 2009

Dear sir,

You made a wrong entry, you should make following entry:

Computer & Printer A/c Dr.

To bank / Cash Cr.

Depriciation will be 60%.

Regards

Abdul Hafeez

Accountant

30 Points Joined July 2010

Originally posted by : Manoj Mehta
	Dear sir, You made a wrong entry, you should make following entry: Computer & Printer A/c Dr. To bank / Cash Cr. Depriciation will be 60%. Regards

Hi,

They bought asset just now then why 60% depriciation need to charged.

Please answer.

CA Raj Doshi

Practising CA

8944 Points Joined December 2013

Computer a/c Dr Creditor a/c Car Creditor Dr Cash bank Cr Depr @ 60%for full year

Printer is an asset and printing and stationary is an expense head. You can capitalize printer as asset in the category of computer peripherals and charge 60% dep on that . Entry can be Printer To Cash/bank/creditor

sitarama charyulu

manager finance

27 Points Joined December 2013

He has not confirmed date of purchase. So we can not give depreciation if it is current day purchase, else can apply. Printer a/c dr To cash&bank a/c dr will be the entry.

karthi

Cost controller

36 Points Joined June 2009

Hi professionals,

With out GRN made (GOODS Receipt Note) we wont capitalsed any

Supposed not GRN made means

we have put in CWIP A/c Dr

Vendor Cr

While we pay(if give any advance means)

Vendor Dr

Bank Cr

After Installed the Computer or Fax Printer

Computer/Printer Hardware _FA DR

C Wip Cr

For Depreciate the particular assets

Depreciate dr (As per Company Act)

Computer/Printer Hardware _FA cr

With regards

D.karthik

manik jain

articled assistant

28 Points Joined March 2014

Kindly tell why asset can't be capitalised if GRN is not made?Where it is mentioned

CA Soman Jana

C. A & C.S (Final)

97 Points Joined June 2008

Grn is not the criteria for capitalisation at all. Goods purchased under valid tax invoice and put to use is the case then eligible for income tax dep for 60% if purchase before 30 sep or 30% as the case may be.making grn is the good practise but not the basic criteria for eligibility. Refer dep as per income tax . ThNks

Keshav Dutt Beetan

Deputy Manager

32 Points Joined January 2012

Dear Karthik,

GRN entry is required only if you involve stores in it, otherwise you can directly capitalize the same, Its not mendatory to route through the process you are telling about.