Dear all
I have paid advance amount of Rs.1100000/- to purchase a fixed assets ,but when delivering the asstes it value was Rs.1075000/- and its confirmed that i am not going to get back the balance amount of Rs.25000/- .Now my question is How to treat the Rs.25000? Can i capitalise the entire amount of Rs.1100000/- Or I have to write off the Rs.25000/-
Thanks &Regards
Azeez
Book value of Fixed Assets should be accounted on sale or purchase price.
In this case you should account the Fixed Assets from Rs. 11,00,000.00 in books
If the said assets will sold the diference amount will be tr to Loss/Profit on sale of fixed assets account and shows in P/L Account. Meanwhile you can debit Fixed Assets A/c by 1100000/
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