Parts purchase

This query is : Resolved 

20 April 2009 If Co. purchase parts for plant & Machinery, then what will be its accounting treatmnet?

20 April 2009 Fixed Assets A/c. Dr.
To Creditors A/c.
(With Machinery purhcase)


Repairs & Maaintenace A/c. Dr.
To Creditors
(For further purchase of parts)

20 April 2009 If the parts of the machine are purchased before the machinery is installed then it would be treated as Capital WIP and if the parts are purchased subsequent to the purchase of the machinery for the purpose of the repairs and maintenance then the effect should be given accordingly




You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CCI Pro
CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries