Cash System of Accounting

This query is : Resolved

rahul baidmutha (Querist)
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27 March 2009 Cash system of accounting is being followed by school.
It has purchased Assets worth Rs. 100000 /- but has made payment only for RS. 80000 /- in current financial year and balance Rs. 20000 /- is paid on next financial year. Please clarify at what value we have to stand Asset in our books whether at Rs. 80000 /- or at Rs. 100000 /-

C A GROUP COACHING

C A GROUP COACHING (Expert)
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27 March 2009 Cash System Of accounting 80000/- Axctual Amount Paid.

CA. Amit Daga

CA. Amit Daga (Expert)
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28 March 2009 In the School they are preparing Receipts and Payment account there for in the balance sheet they will show only 80000 and when they paid 20k they will show 1 lacs

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Laxmi Narayana Sahu

Laxmi Narayana Sahu (Expert)
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28 March 2009 Asset will be shown as capital Work in progress at Rs.80,000/- & in the next year it will be trasferred to the asset account after havng treated Rs.20,000/-