Tally entry for conversion of stock in trade to fixed assets

kiran (proprietor) (24 Points)

30 December 2014

Dear Sir,

Our client has Stock in Trade of Computer System and acessories amounting to Rs 12 Lakhs as opening stock.

In the current year the client wants to use the Computer System and acessories for its own business. Thus the assesse wants to Capatlise the Stock in Trade and transfer the same to Fixed Assets. Please let us know the entry for the same in Tally.

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8 Replies

Arif Ali (Apt Co Advisory) (1225 Points)
Replied 05 January 2015

At current, the computer system is under stock item in tally. And now you want to convert it as Fixed Asset. So create a ledger in the name of computer system under the head of fixed asset.

then now pass the following entry.

Computer system (fixed asset) ..... Dr.

To Purchase (computer system) stock

Amount will be same as purhcase amount of that stock converted.

ANURADHA (Executive Accounts) (35 Points)
Replied 18 March 2017

Conversion of Stock into Fixed Asset

Create a Asset under Fixed Asset

Dr.Fixed Asset (Computer)

Cr. Stock(Computer)

At the time of passing JV Dr.Fixed Asset is coming. But I cannot able to credti the stock inthe JV. Kindly advice me

Arif Ali (Apt Co Advisory) (1225 Points)
Replied 18 July 2017

stock item is not a ledger so it may not be credited. Since this stock item is under purchase ledger so you need to credit the purchase ledger by selection that computer stock item.

Arif Ali (Apt Co Advisory) (1225 Points)
Replied 18 July 2017

Stock item is not a ledger so it may not be credited. Since this stock item is under purchase ledger so you need to credit the purchase ledger by selection that computer stock item.

AptCo Advisor
9910520753
Delhi

Ranjith Poojary (4 Points)
Replied 23 January 2019

If its a manufacturing unit?

We have purchased materials from various places and assembled to a finished product. How can we transfer the stock into a fixed asset? Kindly advise,

surbhi jain (Student) (22 Points)
Replied 19 July 2019

Sir, I have nil value of purchases then by this entry my purchase become negative and in income tax return I am unable to put negative figure. Plz guide me please....