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Gold purchased for personal use.

Srinivas (Student.) (152 Points)

24 October 2011

Hi,

Gold purchased on Credit card & Payment to be made in 5 easy EMI's.

Under which category should i keep the GOLD purchased and how to account the EMI's everymonth.

Thanks.

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7 Replies

Swapnil Jain (Finance - FP&A) (564 Points)
Replied 24 October 2011

Gold purchase is a asset and the net of EMI's you need to pay is your Liability.

As per your question it seems like you want to know the accounting entries?

if it is so, then for purchase

Gold a/c ....Dr

To cash (DP)...cr

To EMI Liability ... Cr

When you pay emi

EMI liability...Dr

To Cash

I hope i did not mis-interpret the question.

Comments and Suggestions are invited

1 Like

martin (Not applicable) (24 Points)
Replied 24 October 2011

yes

swapnil jain you are right. That gold is our asset and EMI is our actual liability. Therefore i agree with your accounting entries........

m @ rt!n

Srinivas (Student.) (152 Points)
Replied 25 October 2011

thanks swapnil for the entries.I pay EMI's every month.But the gold is purchased on credit card.I need to change cash to CC in this entry..

Srinivas (Student.) (152 Points)
Replied 18 November 2011

My actual idea is know where to keep the GOLD purchased by proprietor for personal use in tally(Under which Head).

Gold(jewellery Purchased & used for personal use) Is not a fixed asset so the option is ruled out.

Investments i suppose,not sure...

can anbody tell me the proper head of account it should be placed in tally.

1 Like

Ankit (Accountant) (29 Points)
Replied 20 December 2018

If we consider under group investment, then how to calculate GST in tally on this

ram patil (12 Points)
Replied 15 March 2019

My actual idea is know where to keep the GOLD purchased by proprietor for personal use in tally(Under which Head). Gold(jewellery Purchased & used for personal use) Is not a fixed asset so the option is ruled out. Investments i suppose,not sure... can anbody tell me the proper head of account it should be placed in tally.