Hi,
We are going to take property along with furniture & fixture. In 5 years down the line, the ownership of the furniture & fixture ownership will transfer to us.
In such case which agreement going to make and explain the process.
Your all timely answer on above case appreciated.
Thanks,
Nirav
Segregate the agreements of property and furniture & fixtures.
For property it will be complete transfer with downpayment, while for furniture & fixtures it will be purchase on installments, with clause to complete the payment during 5 years.
But this will be which agreement..
Agreement to sell only, only payment clause will be differed to 5 years installments.
Thanks but how to show in our books of accounts ...We are limited company.
The seller of the furniture would be creditor and the furniture would be added to fixed asset.
Thanks, in this case the property owners and furniture owners are different
Doesn't make difference. Both the agreements would be different.
Thanks...in terms of accounting is right?
CAclubindia
