02 May 2013
one of our client took a place for rent for business premises. the furnitures were already built in by the earlier tenant. this company purchase the same for 1 cr. where as the bill available for 70 Lacs only . can u please help me how i need to account the same. and on what amount i need to charge depriciation.
05 May 2013
As your client purchased the furniture and fixtures @ One Crore so the earlier tenant is to issue you a Invoice for Rs. One Crore. Earlier Tenant will narrate the details of furniture on FIXED ASSET SALES INVOICE. You may keep the invoices for Rs. 70 Lakh as a supplement to Invoice of One Crore.
Based on this Invoice of Rs. One Crore you enter as under:
Dr Furniture & Fixture Rs. One Crore Cr Bank Rs. One Crore
CAclubindia
