Entry of newly purchased asset

Waseem Syed (Advocate ) (272 Points)

28 March 2022

Sir I have Cloth business..I have purcased Two Wheeler .. Whether this has to show in profit and loss account or only in balance sheet

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9 Replies

Eswar Reddy S (CFO- at NHTF) (58275 Points)
Replied 28 March 2022

It has to be shown under PPE in balance sheet.

You may account the depreciation on PPE in the profit and loss a/c

prasad Nilugal ( GST Practitioner & Accounts ) (14901 Points)
Replied 28 March 2022

Two wheeler ( Asset ) A/c Dr
CGST A/c Dr
SGST A/c Dr
To Trade Creditors A/c Cr
( purchase of vehicle , Invoice no - date )

Waseem Syed (Advocate ) (272 Points)
Replied 28 March 2022

Is there any need to show it in trading account

prasad Nilugal ( GST Practitioner & Accounts ) (14901 Points)
Replied 28 March 2022

No ......... As Eswar Reddy says, you have to show as a PPE , Asset side Balance sheet .

Waseem Syed (Advocate ) (272 Points)
Replied 28 March 2022

Ok Sir..Thank you so much

prasad Nilugal ( GST Practitioner & Accounts ) (14901 Points)
Replied 28 March 2022

Pass entry as above , if GST charged .

Eswar Reddy S (CFO- at NHTF) (58275 Points)
Replied 28 March 2022

Depreciation/ Amortization on Asset can be transferred to Profit and loss account at the end of the year

sabyasachi mukherjee (27781 Points)
Replied 28 March 2022

TWO WHEELER IS AN ASSET .IF USED FOR THE PURPOSE OF BUSINESS YOU CAN CLAIM DEPRECIATION.

Waseem Syed (Advocate ) (272 Points)
Replied 28 March 2022

Ok sir..Thank you so much

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