Fixed asset purchased by consideration other than

Atharv Sankliya (1245 Points)

01 April 2023

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

Reply
Follow
Share

7 Replies

CA. Abhilash Krishnan P (Chartered Accountant) (498 Points)
Replied 02 April 2023

At cost

1 Like

Online classes for CA CS CMA, Professional courses for GST, Accounts, Tally etc, & Books

Atharv Sankliya (1245 Points)
Replied 02 April 2023

Sir i am asking at which price the purchase (inventory) a/c is to be credited ?

sabyasachi mukherjee (18899 Points)
Replied 02 April 2023

Replacement cost pluss all expenses incurred to put the asset to use.

Yasaswi Gomes new (Finance ) (2339 Points)
Replied 02 April 2023

At invoice value. There is no principle for that.

sabyasachi mukherjee (18899 Points)
Replied 03 April 2023

Who told?
pls understand the accounting standard for fixed assets and then comment.

CA Parul Saxena (CA) (8317 Points)
Replied 03 April 2023

Fixed asset should be recorded at price at which stock was recorded. Simple.

Yasaswi Gomes new (Finance ) (2339 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.