Stock Transfer to Fixed asset

But i also want to reduced the closing stock from books then what should be the entry ? as if we pass JV stock item dont get reflected 

Originally posted by : sabyasachi mukherjee

Stock transfer to fixed asset is a easy process.1. concurrence of board subject to the objects of the business.2. then the process can take place.

Ohhh God...

You are also attend this query with Your great knowledge... Right...??

Okay , I leave this query. You can continue with Your Knowledge...

Originally posted by : sabyasachi mukherjee
	A stock cannot be used as a fixed asset.understand and then comment.

Hello Mr,

Read the query and replies from first.

உனக்கே இது தெரியும் போது, எனக்கு தெரியாதா...???

Actually we have a startup and the finished goods lying in the books are getting used for testing purpose only so we are never going to sale it hence we wanted to transfer the same to Fixed asset 

Only some spare parts like moulds can be accounted as inventory. If you got parts and assembled them, recognise the asset on the day it is finished. All trial and err or testing of prototype expenses fall under development phase and capitalised. Your not clear in your query. What is the fixed asset that you assembled? What are the finished goods that your testing? 

We purchased some Raw materials assembled them and produced one finished good and its lying in Closing stock. So some of them are being use for testing purpose before launching it to the market. hence the stock we are using for testing we want that stock to be capitalized 

hence i needed some guidance regarding the same.

Dr. Purchases

Cr. Bank

(Raw material bought)

Dr. Finished goods 100

Cr. Raw material 70

Cr. Bank 30 

(Production over)

Dr. Intangible asset 100

Cr. Finished goods 100

(Prototype testing expenses capitalised)

Finished goods are prepared under Stock item so it is not getting reflected when i am passing the JV.