The following is a balance sheet of my client as on 31.03.2009
| BALANCE SHEET AS AT 31.03.2009 | |||||
| (Rs. In Crores) | |||||
| Liabilities | Amount | Assets | Amount | ||
| Share Capital | 200.00 | Fixed Assets | 200.00 | ||
| Technology Reserve | 100.00 | Cash | 100.00 | ||
| 300.00 | 300.00 | ||||
Technology Reserve is created out of Gross Profits to finance purchase of Computer equipments. In the current financial year (2009 - 10) my client has purchased few computers worth Rs.100 crores out of the Technology Reserve.
How to record the transaction? What are the entries to be passed? Please advise.
CAclubindia
