Tally entry

if its cost is more than Rs.5000 then capitalise it as fixed asset so pass the following entry:

Fire Extinguisher/Office equipment A/c                      Dr.     xxxx

                                   To Cash/Bank/Party A/c                                  xxxx

                                    To VAT Payable A/c                                          xxx

Remove VAT payable account in case ur a Service Industry. Or else in case it is worth Less than  Re.5000 then Expense it out as office expense:

Office Expense A/c                    Dr.                     xxxx

                        To Cash/Bank/Party A/c                         xxxx

I hope ur query is solved....!!!! :)

Dear Jivanji
 

You have to expense out the cost of Fire extinguisher. Because you can not treat such euipment as Fixed Assets. As there is no such benefit will arise that will help you in day to day business. That is just for the Safety of your office. If you have smoke detection & automatic water supply facility then only you have to capitalise such thing.

Cash Purchase : Repairs & Maintenance A/c......Dr
                                     To Cash

Credit Purchase : Repairs & Maintenance A/c.........Dr
                                      To Creditors A/c

                             Creditors A/c.....................Dr
                                      To Bank A/c.

@ Gunjan : Dear how can u credit VAT payable on purchase of item? How can it be VAT Payable? You already paid while purchasing it.

                       Corrected entry for your knowledge :

Extinguisher/Office equipment A/c Dr. xxxx
VAT Paid A/c Dr.                                  xxxx
        To Cash/Bank/Party A/c xxxx

Dear Jivanji
 

You have to expense out the cost of Fire extinguisher. Because you can not treat such euipment as Fixed Assets. As there is no such benefit will arise that will help you in day to day business. That is just for the Safety of your office. If you have smoke detection & automatic water supply facility then only you have to capitalise such thing.

Cash Purchase : Repairs & Maintenance A/c......Dr
                                     To Cash

Credit Purchase : Repairs & Maintenance A/c.........Dr
                                      To Creditors A/c

                             Creditors A/c.....................Dr
                                      To Bank A/c.

@ Gunjan : Dear how can u credit VAT payable on purchase of item? How can it be VAT Payable? You already paid while purchasing it.

                       Corrected entry for your knowledge :

Extinguisher/Office equipment A/c Dr. xxxx
VAT Paid A/c Dr.                                  xxxx
        To Cash/Bank/Party A/c xxxx

Dear All in my openion ... Entry Should Be..

Office Equipment                                 Dr

Vat Recoverable                                    Dr

          To Cash/Bank

(If you Purchase fire Extinguisher and if your have TIN no. you can claim vat in next F.Y. in two part)

(If your Refill the Fire extinguisher then it will Dr. to Rep. & Matin.)

i agree with neeraj

yaa agree with neeraj

I think fire extuingisher purchase should be treated as an asset rather than repair & maintenance item..I agree with neeraj that if refilled then only repair & maint..

@ varsh*t thank you for correcting me...i actually haver mistaken the transaction...sorry the error is regretted...!!!

RESPECTED NEERAJJI

WHY U DEBITING VAT RECOVERABLE ACCOUNT IN UR POST

PLEASE CLARIFY........

Becoz it will treat as an assets (Current Assets)

Next year when you will take credit  of vat ,then it will be credited by laibility account (CST or VAT) Payable.

i purchase fixed assets but credit base how pass entery in tally and which voucher entery