A Pharmacy - which is a part of a Society , received Fixed Assests (like A/c,Refrigerators etc) from a Medicines company for free .
How should the assets be recorded in the books?
For what value should those assets be shown in Balance Sheet? i.e For a nominal value or market value of the asset ?
Should depretiation be provided?
The Assets should be recorded at Market Value and should be depreciated at the rates prescribed by the Income Tax Act, 1961.
Regards,
Devendra Kulkarni
Normaly Free items can't be clasified under Assets. In order to verify for Physical Verification the book value can me marked as Rs:1/- or so (purely for identification purpose) If I am right.
at nominal values..
& Depriciation cannot be claimed
Shyam Joshi & Associates
Pune
B.Com
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