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Entry of newly purchased asset
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
Replies (9)
It has to be shown under PPE in balance sheet.
You may account the depreciation on PPE in the profit and loss a/c
You may account the depreciation on PPE in the profit and loss a/c
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 )
CGST A/c Dr
SGST A/c Dr
To Trade Creditors A/c Cr
( purchase of vehicle , Invoice no - date )
Is there any need to show it in trading account
No ......... As Eswar Reddy says, you have to show as a PPE , Asset side Balance sheet .
Ok Sir..Thank you so much
Pass entry as above , if GST charged .
Depreciation/ Amortization on Asset can be transferred to Profit and loss account at the end of the year
TWO WHEELER IS AN ASSET .IF USED FOR THE PURPOSE OF BUSINESS YOU CAN CLAIM DEPRECIATION.
Ok sir..Thank you so much
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