Fixed assets

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

13 June 2013 Dear sir its very urgent.
I have join a small firm. The firm hasn't keep the books of accounts. So I had prepared the chart of accounts. Now I have a doubt. How to account the Fixed assets. There are number of Fixed assets like Furniture, computers, Fixtures and so on. assets are purchased on different months and different years, some of them have no purchase bills.
So how can I prepare the fixed assets ledger and old depreciation.
OR
Depreciation start with current year accounts with original cost (Purchase price)
Thanks in advance.

harish

harish (Expert)
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13 June 2013 You have to categorised the assets with same depreciation rate. Assets which were purchase in previous years, depreciation needs to be computed & needs to shown in register. Asset with no bills, quotes shall be collected from three vendors stating the offered sale value. Highest of it will be the value to be taken as book value.

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Querist : Anonymous

Querist : Anonymous (Querist)

13 June 2013 Thank you sir
So we keep previous years depreciation only onto the assets register. And continue with the remaining assets value Right
So the previous years depreciation is a must. right?

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harish

harish (Expert)
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14 June 2013 Yes.Asset with records will follow normal accounting treatment whereas unaccounted record need to follow method as earlier suggested. Also ensure to assess the remaining useful life alongwith determined value of unrecorded asset.

Querist : Anonymous

Querist : Anonymous (Querist)

14 June 2013 Thank you very much sir

If unrecorded Furniture value is Rs.50,000
Calculated 1 year depreciation is 1,000.
Both the above recorded on assets register only.
and After the dep. the Furniture value is Rs 49,000 will be on the Balance Sheet in Tally. is it right? if not correct me

Thanks

Querist : Anonymous

Querist : Anonymous (Querist)

14 June 2013 Thank you sir
in Advance