Introduction of Fixed Asset

This query is : Resolved

Devendra (Querist)
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04 July 2011 Mr. X is a director of XYZ Pvt. Ltd. The Co. is incorporated on 18th March 2011. Mr. X has purchased a Laptop in Jan 2011. Now can Mr. X introduce the Laptop in the Pvt. Ltd. Co.? (Cost of Laptop Rs. 450000) Will it be as a Loan? How will I show the Fixed Asset in Pvt. Ltd. Co.?

Ravikant

Ravikant (Expert)
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04 July 2011 This can be done, as asset purchased by director on behalf of the Pvt Ltd company,the amount can be show as Loan,
Asset Debit
To Mr. X (Loan)
Later amount should be paid back to Mr.X

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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04 July 2011 The assets purchased by the director can be shown as Assets of the company. Pass a resolution in the Board of directors meeting about the capitalization of the laptop and then pass the entry. If payment is to be made then pay the directors by cheque. If loan is to be shown credit directors loan account. If share application money is to be shown take the share application form and credit share application money. All these are possible but do not forget to pass a board resolution.

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CA. Krishna K Neeraj

CA. Krishna K Neeraj (Expert)
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04 July 2011 Yes, you can pass board resolution in this regard and can show laptop as a part of computer (fixed assets) owned by the company. the amount payable to the director may be treated as loan or share application money .