FIXED ASSET TRANSFER

This query is : Resolved

sandeep (Querist)
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24 September 2008 Dear Member,

I am working with Service Indusrty.
We are having 20 branches in Mumbai Region.
In case if we closed one branch & fixed assets pertaining to that branch transfer to another existing/new branch.
What entry in Tally & What correction in Fixed Asset Register, i am supoose to do?

Please reply urgent.

CMA Jitendra Singh

CMA Jitendra Singh (Expert)
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24 September 2008 As the same assets are shifted to one branch to another branch ,so there is no ipmact in the fixed assets register of the Head Office main company.

In case of branch level accounting assets have to be credited and the branch in which same have been transferred need to be debited with value of assets.

In contra,the receiving branch is suppose to pass the same entries.

Sachin Jain CA, CS, CWA

Sachin Jain CA, CS, CWA (Expert)
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24 September 2008 I think the Location Comumn also needs to be ammended as required by CARO.

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Pranesh

Pranesh (Expert)
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24 September 2008 yes,Location column in Fixed Asset register need to be ammended

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
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25 September 2008 Shifting of Assets from one unit to the other may done by preparing a document which may be called as 'Shifting Memo'. It shold contain the following information:
1. Date
2. Unit wherefrom being shifted
3. Unit where it is being shifted
4. Tag no as given to the Asset
5. Brief Description of the Asset
6. Date of acquisition of the asset
7. Vendor from whom acquired
8. Original Total Cost
9. Accumulated Depreciation till date
10. Details of AMC or Warranty, if any

Entry for shifting of this should be passed in the Fixed Assets Register which will define the new location of that Asset.
Two copies of the same may be sent alongwith the asset one of which will be received with acknowledgement by ur counterpart at the other unit which may be retained on ur records.
In case seperate books of accounts are maintained at both the units then transfer entry for the asset may be passed.
THE ABOVE PROCEDURE WILL HELP IN KEEPING THE TRACK OF THAT ASSET BESIDES THE STATUTORY COMPLIANCES.