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provision for capital goods purchase

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(Querist)
09 April 2010 My company has entered into a contract for purchase of fixed assets and an installment is due on 15 march 2010.

Company has not paid the installment.

Is it required to make the provision for the amount payable ? as it would increase my fixed assets and my current liabilities.

Please advice
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kartik_somu

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kartik_somu (Expert)
09 April 2010 If the asset is yet to be received and put to use, account it in Capital Work in progress and you can transfer it to asset A/c later

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