what is recocilation of fixed assets? what if we donot reconcile our fixed assets ? does it effect our balance sheet????
Menu
Difficult question
Replies (1)
In big organizations there are numerous number of Fixed Assets held by the organization. for this purpose a FA Register is requried to be maintained. these FA are also there in the ERP in whihc the accounting is being done. So at the end of each month the total of FA as per the FA register held at cost the depreciation charged on such assets & the total as per the system should tally each other. For this purpose an reconciliation is requried to be done between the two just as you prepare an Bank Reconciliation Statement & check & sort out the differences between teh two.
Small organizations should alos prepare teh FA Register & dot eh reconciliatio between the sytem & teh register.
So if you do not prepare the FA register then it would affect your B/S
Recent Topic
- ITR-2 : cash income that does not fall under any h
- Debit note issued to supplier
- Ca pratik takkar imp list
- TDS EXECESS AMOUNT ADJUSTMENT
- What's the ONE thing about GSTR-2B / IMS reconcili
- Is GST Registration Mandatory for Freelancers in I
- ITR TO FILE
- Shift of Place of Business from one state to anoth
- Form 10E u/s. 89(1). Need clarification because Ex
- Long Term Capital Loss - Tata Capital unlisted sha
Related Topics
CAclubindia
