Fixed assets

Yes it can be done. Provided it is used for the business purposes. 

If the asset is to be used for the purpose of business of the HO & payment is being made from the account of the HO then it can be shown in the books of the HO.  You can ask the vendor to issue an amended bill wiht the address of the HO.

YES !!!

co. can because i think co. name is important to be shown in bill not the address and further all a/cs are

maintained at delhi so co. can capitalise.

and after all, all assets of co. and its branches come into the same b/s na !!! "in my view" 

Hi Hemang,

Mr. Giridhar has said right.

Addition from my side - Since the invoice is addressed to Chennai branch, this matter will be pointed out in Audit. You have to prove them that such asset is in fact used by Delhi office and payment made by them. If amount is material, then better to mention in 'Notes to Accounts'.

In my opinion, even if this is not the case, means asset is used by chennai branch and payment made by branch's account, still you can capitalise it because branch accounts are maintained at delhi office and it seems from your query that separate financial statements are not prepared for chennai branch.

If separate financial statements are prepared for chennai branch and asset is used by branch, then it cannot be capitalised in books of delhi office.

Kindly rectify me if Im wrong

If supplier invoice has the address of Chennai branch and IF the company maintains separate books of account for its branches, then the asset should be capitalised in the books of the branch and not in HO books (irrespective of the fact that ultimately everything is going to be clubbed under the same balance sheet). If the company has any justifiable reason for capitalising the asset in HO books instead of in branch books, it must prove this with supporting. You also have to cross verify this with respect to entry of this asset in FA register maintained by the Company under the Companies Act as to location of this asset and also verify the FA physical verification report which is required under CARO.

If it does not make any difference in capitalising the asset either in HO books or in branch books, then there is no sense in maintaining 2 sets of books - one for HO and the other for the branch.