if a company buy fixed asset in exchange of inventory then at which price it is recorded - cost + profit or only at cost?
2 - does it is considered as sale? or just a credit of purchase a/c
7 Replies
Atharv Sankliya
(1359 Points)
Replied 02 April 2023
Sir i am asking at which price the purchase (inventory) a/c is to be credited ?
sabyasachi mukherjee
(27736 Points)
Replied 02 April 2023
Replacement cost pluss all expenses incurred to put the asset to use.
Yasaswi Gomes new
(Finance )
(4545 Points)
Replied 02 April 2023
At invoice value. There is no principle for that.
sabyasachi mukherjee
(27736 Points)
Replied 03 April 2023
Who told?
pls understand the accounting standard for fixed assets and then comment.
pls understand the accounting standard for fixed assets and then comment.
CA Parul Saxena
(CA)
(8525 Points)
Replied 03 April 2023
Fixed asset should be recorded at price at which stock was recorded. Simple.
Yasaswi Gomes new
(Finance )
(4545 Points)
Replied 03 April 2023
@ sabyasachi is correct and im sorry they can be measured at fairvalue or at carrying amount of goods given.. amd this becomes invoice value. I dont know this paet of the principle.
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