Fixed Asset -Entry

Dear all,

               We purchase a machinery from M/s. Sri Ganesh Equipments. In that Bill

Machinery Value      25000

Less: Discount 10% 2500

Sub Total                     22500

Add: Vat 13.5%             3038

Grand Total                 25538

Accounting Entry-Method

1) Machinery A/c    Dr. 25000                                2) Machinery A/c Dr.  22500

    VAT 13.5%           Dr.     3038                                    Vat 13.5%        Dr.    3038

    Discount Received           Cr. 2500                          Sri Ganesh Equipment Cr.   25538

    Sri Ganesh Equipment    Cr 25538

In the Above methods Which one is the Correct Method to pass the Entry

 

Replies (2)

Cost of fixed asset includes all costs incurred on procurement of that asset and excludes deductable tax amount and discount.

In view of the above method 2 is correct.

sECOND eNTRY is Right... ad TRADE DISCOUNTS are ignored while passing JE

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 29 August 2026
Article Assistant

RRPM & ASSOCIATES LLP

Chennai

CA Inter

View Details
Company
Featured 06 August 2026
Junior Accounting Associate

Prish Consultancy LLP

New Delhi

B.Com

View Details
Company
14 August 2026
Article Assistant CA Articleship

Eshwar & Co Chartered Accountants - Nungambakkam

Chennai

CA Inter

View Details
Company
ARTICLESHIP 05 August 2026
CA associate

Arun Deepak and Company

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 08 August 2026
Article Assistant

Sanath Sheshagiri & Co.

Bengaluru

CA Inter

View Details
Company
14 August 2026
Semi Qualified

Goyanka & Associates

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 26 August 2026
Article Assistant

ANIVESH CONSULTANTS LLP

Gurgaon

CA Inter

View Details
Company
11 August 2026
Chartered Accountant

Aviv Global Pvt Ltd

Ahmedabad

CA

View Details