Amount at which Fixed asset to be recorded
This query is : Resolved
15 October 2009
A Fixed Asset purchased at Rs.10 Lacs and a discount of Rs.1 lacs received from the Vendor. At what amount should the assets be recorded in the Books and on which amount should the depreciation be charged i.e. at Rs.9 lacs or at Rs.10 lacs?
sunny bansal
(Expert)
15 October 2009
u can claims the depreciaion only on rs.900000.00 only as per As-10.actual cost is rs.900000.00.
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CA SANJAY MUKHERJEE
(Expert)
15 October 2009
Agree with expert sunny
15 October 2009
Your asset cost is Rs. 9 lakhs.
You can claim depreciation on the above amount only.
As per AS 10 Cost of Fixed asset is calculated as under:
"The cost of an item of fixed asset comprises its purchase price, including import duties and other non-refundable taxes or levies and any directly
attributable cost of bringing the asset to its working condition for its intended use; any TRADE DISCOUNTS AND REBATES are deducted in arriving at the purchase price."
You can claim depreciation on the above amount only.
As per AS 10 Cost of Fixed asset is calculated as under:
"The cost of an item of fixed asset comprises its purchase price, including import duties and other non-refundable taxes or levies and any directly
attributable cost of bringing the asset to its working condition for its intended use; any TRADE DISCOUNTS AND REBATES are deducted in arriving at the purchase price."
BALASUBRAMANYA B N
(Expert)
15 October 2009
Yes agree with expert, on cost value.
15 October 2009
OF course 9 Lacs
Entry :
Fix Asets Dr
Bank Cr
Entry :
Fix Asets Dr
Bank Cr
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