Account head

This query is : Resolved 

04 August 2008 hi friends,i am gopal, please help me my querry is:-
340 books of Rs.9,65,649 purchase for library is debited to Library exp (as a revenue exp) but i think that this is wrong account head. What "Books & Periodicals" is correct account head or any other. please reply as soon as. Thanks (in advance)
my e-mail id- gopalj7@gmail.com


04 August 2008 1st we must know the what is the nature of the business.Generally, pur of books is debited into books & periodicals. But the case could be different if the business is an educational institute or a training centre or a library. Also, in these cases books may be treated as fixed assets to be w/off over a period of time.

04 August 2008 In case of a library, the purchase of books should be treated as deferred expenditure, to be written off over a period of time. It can not be shown in Purchase as it is not the business of Library to sell the books.




You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CCI Pro
CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries