A LTD COMPANY PURCHASE A CAR FOR THE USE OF ITS OFFICIAL PERPOSE AND IT GET A GOLD COIN FREE.HOW SUCH GOLD COIN WILL BE SHOWN IN THE BOOKS OF ACCOUNT? PLESE ANYONE ANSWER IT.
Barun Nandi (CWA) 30 October 2011
A LTD COMPANY PURCHASE A CAR FOR THE USE OF ITS OFFICIAL PERPOSE AND IT GET A GOLD COIN FREE.HOW SUCH GOLD COIN WILL BE SHOWN IN THE BOOKS OF ACCOUNT? PLESE ANYONE ANSWER IT.
Chinmay (Accounts Professional) 31 October 2011
Girish Joshi (D.G.M. (Commercial)) 31 October 2011
| Originally posted by : Barun Nandi | ||
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A LTD COMPANY PURCHASE A CAR FOR THE USE OF ITS OFFICIAL PERPOSE AND IT GET A GOLD COIN FREE.HOW SUCH GOLD COIN WILL BE SHOWN IN THE BOOKS OF ACCOUNT? PLESE ANYONE ANSWER IT. |
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Gold Coin .................. Dr
To Misc Income
OR
To Gifts Received
Best regards,
CA Neha Jain (Practicing CA) 31 October 2011
in my opinion, the gold coin should be treated as current investment as company will be willing to sell it on appreciation.
entry should be -
investments Dr (with the market value on date of purchase of car)
Car Cr
current investment will be revalued at each balance sheet date with market value.
if company intends to sell it in next three months, it should be added to cash equivelants for cashflow purpose.
Devendra (Chartered Accountant) 31 October 2011
I am convinced with the Answer given by Neha Ma'am. It should be shown under Investment by passing the following entry:-
Gold Coin (Investment) Dr. XXXX
(Grouped under Investments)
To Car A/c XXXX
(Grouped under Fixed Assets)
[Being Gold Coin recorded as Investment]
Regards,
Devendra K
Bhaskar Unnikrishnan CPA CMA (Accounts / Administration) 01 November 2011
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Originally posted by : CA Neha Jain |
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in my opinion, the gold coin should be treated as current investment as company will be willing to sell it on appreciation. entry should be - investments Dr (with the market value on date of purchase of car) Car Cr current investment will be revalued at each balance sheet date with market value. if company intends to sell it in next three months, it should be added to cash equivelants for cashflow purpose. |
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Right answer for this case...
Hemanth Sai (CA-FINAL,AUDIT TRAINEE) 02 November 2011
agree with neha mam..
if it was encashed immediately then
cash a/c dr xxx
to car a/c xxx
Pandit Kolekar 19 April 2018
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