11 April 2012
while preparing fix asset register for a company i am little bit confuse that whether capitalized labor charges paid for furniture should be entered in Fix Asset register or not???? and my second question is, is it compulsory to give code to every asset???? coz its being difficult to give code to every item.
Coding system is being used to identify the Fixed Assets and to have control over the same.
Suppose, You have 3 divisions in your Factory and Machineries are being used / installed in the factory. Assign 1 2 and 3 numbers to your Divisions and now all machineries belongs to these divisions will start from respective number like 1100, 2100, 3100 and that way it would be easier to identify and control like place of machinery and its identification at any point of time. Also you can mention year of purchase. Coding will be effective in many ways.
11 April 2012
Not required separately to enter labour charges. What is the cost of furniture which u r capitalising shall be entered in FA Register. In respect of coding, explanation given by Mr. Doshi can be followed.
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