Entry for Purchase of assets

DEAR KOKILA,

CASE 1  VAT CREDIT IS TO BE TAKEN

Asset (say Plant & Machinery) a/c...............Dr         10,000

VAT on Capital Goods a/c.............................Dr           1,200

                               To Cash/bank/creditor                                                     11,200

CASE 2  VAT CREDIT IS NOT REQUIRED

Asset (say Plant & Machinery) a/c...............Dr         11,200

                               To Cash/bank/creditor                                                     11,200

if vat input is allowed as per your registration then u pass entry by

assest  dr  10000

inputvat dr    1200

cash/bank  11200

and if input not allowed then

assest dr 11200

cash/bank

agree with Kundan