Depriciation

This query is : Resolved

CA VIKASH AGARWAL (Querist)
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19 March 2009 We was purchase an asset worth rs.1,00,000.00
The Vendor Grant Us Rs.50000/- as a 10 installments of Rs.5000/- each

Vendor setoff this instalment amount in our bill (he provide us AMC service)

What Should We Tretment About this transaction in regard to depriciation & Book Expenses.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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24 September 2011 1. Asset Purchased

Asset A/c Dr. 1,00,000
To Vendor 1,00,000

2. Payment of Installment

Vendor
To Bank

3. Adjustment of Payment against Service Invoice

Vendor Dr.
To Service Fees (Income)

There will be no impact on depreciation.