18 April 2012
A company purchase a fixed assets for rs100000 and received a tempo as a gift what will be journal entry for purchase and depriciation entry on tempo @ 20% p.a
18 April 2012
Disagree with expert. No person will given any benefit free of cost in business. There will be any advantage or benefit behind that. The gift obtained is not pursuant to the business of the assessee. The offer will be the same for all customers. i.e. the cost of tempo is already included in the fixed asset cost. However, since the same cannot be ascertained, it will be accounted in books at 0 cost. Entry is Fixed Asset A/c Dr 100,000 Tempo A/c Dr 0 To Liability A/c 100,000 The tempo will be included in the FA Register of the Company and the same will not be treated as income.
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