Suppose Mr X is engaged in the business of buying and selling used trucks.If a partnership firm buys trucks from Mr X on the basis of written agreement and value signed by both(Mr X and Managing Partner on behalf of Partnership Firm) parties.
The RC books will not hold the names of Mr X any time.
Is this sufficient proof for capitalising the truck? and depreciation?
DEAR LAXMI
Agreement is done that is very ok but there must be something paid in the monetary terms as the consideration which will be nough to book it and capitalise in order to claim deduction.but as madhvi said pay it in cheque.
THANK YOU
If the payment is partly by cheque and partly by cash in subsequent year ,is that okay?
Mr. X signs in the agreement that he received balance cash from the firm on the date of receipt
CAclubindia
