I have a doubt in accounting. please help me as soon as possible

933 views 6 replies
i am an accountant. my company purchased a fixed asset. but i didn't recorded it in the books of accounts. after one year returned the fixed asset to the seller. the seller gave me credit note. my question is can i give him debit note?? how can i give him debit note, as i have not recorded the purchase of the fixed asset??? please give me complete step by step solutions and all the necessary entries in journals etc.. thank u so much friends...
Replies (6)

Plz provide some more details as to,

  1. Whether the Company has prepared Balance Sheet and filed with RoC (Without the asset being booked in accounts)
  2. What entry was passed at the time of Purchase e.g. if you have not recorded assets then you would have debited some receivable instead of asset for the amount paid for purchase of assets.
  3. what are the dates of transactions date of Purchase and date of Return.

sir,

thanku so much for such a fast reply...

i dont have details..

sir, one of my friend asked me this question. i dnont know the answer. so i asked in this forum..

sir,

can u please answer the question...in many possibilities...

Assume that the asset purchased on 01st October for Rs. 1,00,000/- payment made through bank and errorenous entry passed on payment as Debtors A/c Dr to Bank.

On the year end Debtors Balance in Balance Sheet is Rs. 1,00,000/- instead it should be Fixed Asset less depreciation (suppose the Depreciation Rate as 10% SLM). So our Asset in Books should be Rs. 95000 and Depreciation Rs. 5000.

On 30th Sept of next year

The Should be value in books for Asset Rs. 90000 And Accumulated Depr Rs. 10000,

We Return our asset to the Seller, But first we have to rectify in our books as follows

                Assets A/c Dr.                90000

                Depreciation A/c Dr.          5000(C.Y. Statement of P&L)

                Depreciation A/c Dr.          5000 (Prior Period Item as per A.S.5)

                To Debtors                        100000

Now while returning the Assets take the amount to be received from seller as selling price and calculate gain or loss on asset

Selling price of Asset - Value of Asset in books.

 

 

 

 

sir..

thank u so much for such a simple explanation...

but.. sir, assume we have not entered anything in the books of accounts at the time of purchase of fixed asset...i have not recorded the asset & i have not debited any receivable, then what will be the entries...?? can i give debit note when returning?? if yes, then how??

The Company didn't recorded asset or receivable but, the company would have passed entries from bank Statement there would be an entry for payment of purchase of asset, we would have to know what treatment the company did for that payment and accordingly we could suggest a rectification entry.

It could be possible that the company had purchased the asset in cash ( if amount of asset is below 20000) and didn't give effect of purchase of asset or of cash.

In both situation first company would have to book asset in the Accounts of Company by passing rectification entry and then after could issue a debit note corresponding to the credit note send by the supplier.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register