Fixed assets
This query is : Resolved
19 March 2013
IS CASH DISCOUNT RECEIVED ON PURCHASE OF FIXED ASSET WILL BE DEBITED TO PROFIT OR LOSS ACCOUNT OR NOT.
19 March 2013
Cash discount is not recorded.....book the amount at which fixed assets has been purchased....Say on Fixed assets worth Rs.100000/- you were given 5000/-cash discount then record the asset on 95000/-entry will be:-
Fixed Asset Dr............95000
To cash/bank.................95000
Fixed Asset Dr............95000
To cash/bank.................95000
19 March 2013
But you were given bill of Rs 100000/- and Rs 5000/- is Cash Discount which you have received because of Earlier Paymemt then what you will do.
19 March 2013
Ask the vendor to mention the discount in the bill....
19 March 2013
And its very strange that you have make the payment of 95000 and vendor has given you bill of Rs.100000/-
19 March 2013
Nothing is Strange. The Terms and conditions were that if you make payment within 15 Days you will received discount of Rs 5000/-. else you have to pay Rs 100000/- Its is cash discount and not trade discount.
19 March 2013
Mr.gaurav vendor can mention the discount paid in the Invoice....generally it happens when cash discount is paid....invoice is prepared as:-
Fixed Assets....................100000
(-)Cash Discount...............5000
Net payment.........................950000
Fixed Assets....................100000
(-)Cash Discount...............5000
Net payment.........................950000
19 March 2013
At the time of issuing the bill do the vendor know that i am going to make the payment within 15 days or should i ask him for revised Invoice.
19 March 2013
Ask him to mention the discount in the invoice.....
19 March 2013
Same can be deducted from respective asset account not to P&L.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GST Regis.
- Inventory of finished goods
- RCM INVOICING FROM NOV-2024
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- Disallowance of Section 43B(h) to sez units
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Sale of property furniture sale
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Tds on building rent monthly
- Should I include march foreign salary received in April in my income for FY 2023-24?
- HSN Details in IFF/GSTR-1 & in GSTR 9
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
Trending Online Classes
CAclubindia
