query relating to journal entry

This query is : Resolved

poonam (Querist)
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18 November 2008 if i have purchased a computer for rs.50000 and got one printer free with it what entry will be passed?

poonam

poonam (Querist)
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18 November 2008 this printer whether to be treated as discount or not

Ram Avtar Singh

Ram Avtar Singh (Expert)
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18 November 2008 Computer Capitalize dr
party cr

(Bing inv no. computer & Printer purchase)

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Zeeshan

Zeeshan (Expert)
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18 November 2008 look poonam there will be no separate entry is required to be passed for free printer.
you should capitalise the whole computer as one single assets @ 50000/- and the entry will be:
Computer account Dr. 50000/-
to Bank/cash/party a/c 50000/-

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
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18 November 2008 Any Fixed Asset acquired Free of cost is not required to be booked in accounts as the carrying cost in such a case is NIL. However, an entry in the Fixed Assets Register is required to be noted down.