Purchase a electronic equipments

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 April 2016 Hi Sir
Can a director of a Pvt Ltd co purchase a UPS device in finance for rs--130000/- for use of companies production as it is a website development company. Because finance company (bajaj finance) is financing the ups device in company . name.

If it is possible then what will be the accounting treatment

Thank You
ajoy singh

Accounts executive
B3NET TECHNOLOGIES PVT. LTD

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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06 April 2016 you can capitalise the same under Fixed Asset ,
Purchase +Debit UPS Credit Vendor
Payment -Debit Vendor Cr-Bajaj Finance
When Payment Made to Finance -Debit Bajaj Finance Cr-Cash or Bank

Querist : Anonymous

Querist : Anonymous (Querist)

06 April 2016 Thanks for giving accounting treatment for the same.
But the directors of the company can purchase the asset in his name for company work purpose ?

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KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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06 April 2016 Yes, but the Liabality to be create in the name of Director.

Querist : Anonymous

Querist : Anonymous (Querist)

06 April 2016 Depreciation can be available for this type of assets ( online ups system) in the co. books of accounts ?
How this assets to be shown in the company books of accounts

can you tell me in details that how liability to be created in the name of director of the company?