Accounting entry

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Gurwinder Singh (Querist)
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24 December 2013 We have manufacturing unit in punjab & purchased Boiler from Delhi @ 120000.00 agst. C form with 2% cst.

My Q. is what will be accounting entry for the same as i wants to show it in purchase ( for getting C form from sales tax department) & in fixed assets also ( to charged Depreciation )

Kindly Help.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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24 December 2013 Incase your CST registration allows you to purchase boiler against C form you can apply and get from department

entry will be add the CST as cost of purchase of fixed asset

Dr: Boiler
Cr:Vendor a/c

Gurwinder Singh

Gurwinder Singh (Querist)
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24 December 2013 Dear Sir can i pass entry- purchase capital goods for showing purhase & than can i transfer purchase capital goods a/c to boiler a/c for depreciation ?

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Manish Bhandari

Manish Bhandari (Expert)
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24 December 2013 If you are talking in terms of presentation as per VAT you can do that exercise. Like debit the asset to purchase a/c as capital purchase and then transfer to Fixed Asset A/c.