Pls guide me whether we need to create a provision in the books for the assets procured and payment yet to be done.
Menu
provision for payments for assets purchased in the year end.
Replies (1)
No need of showing separate provision for payment towards acquisition of Fixed Assets. It will be shown under the head Sundry Creditors, as it is still payable.
Following is the Journal Entry to be passed as on 31/03/2011 :-
(Assumed that the Fixed Asset is purchased on the above mentioned date)
Fixed Asset A/c Dr. XXXXXX
To Sundry Creditors A/c XXXXXX
(Being Fixed Asset purchased)
Regards,
Devendra K
Recent Topic
- Purchase return under gst
- Long Term Capital Loss - cannot be carried forward
- Cross-utilization of ITC between Trading and Resta
- Form 121 eligibility for non deduction of TDS for
- Gold/silver etf. STCG. how to decalre in ITR at s
- ITR-2 : cash income that does not fall under any h
- Debit note issued to supplier
- Ca pratik takkar imp list
- TDS EXECESS AMOUNT ADJUSTMENT
- What's the ONE thing about GSTR-2B / IMS reconcili
Related Topics
CAclubindia
