Accounting for assets received at 0 cost

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 September 2012 Hi,

Please let me know how assets received at 0 cost should be accounted:
which AS deals with the same
at what cost should it be recorded
how should accounting entries floe

Guest

Guest (Expert)

10 September 2012 If you to bring any asset into the books of accounts, the value is to be kept NIL then you record it with a token value of Re. 1. This practice of token value being assigned to various assets is followed by various MNCs.
Fixed Asset A/c Dr. 1
To Party A/c. 1