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A clothing firm purchased laptop

Ks (Ac) (138 Points)

28 February 2022

a clothing firm purchased a laptop of Rs 100000 and delivery charges were Rs 500 and what are the journal entries

does the delivery charges are recorded in delivery expense A/c in which the firm's goods delivery expenses is recorded ???

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7 Replies

Naveen Kumar (729 Points)
Replied 28 February 2022

Laptops .( Fixed assets) Dr.
Bank / Sundry Creditors CR.

Delivery expenses Dr ( indirect exp
Cash/ Bank Cr

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Eswar Reddy S (CFO- at NHTF) (58270 Points)
Replied 28 February 2022

Generally if it is online purchase then total price will be inclusive of all charges..

prasad Nilugal ( GST Practitioner & Accounts ) (14803 Points)
Replied 01 March 2022

As per AS 10 expenses incurred for Delivery to be capitalise .

sabyasachi mukherjee (27579 Points)
Replied 02 March 2022

There is no connection with online and fixed asset.The fixed asset accounting guidelines are different.All expenses incidental to put the asset to its working condition are considered.

Eswar Reddy S (CFO- at NHTF) (58270 Points)
Replied 02 March 2022

Property , Plant & Equipment has different guidelines & there is separate accounting standard.And we can't even call it as Fixed Asset but you need to use PPE.

So the motive of the earlier comment is different.

If it is online payment , total payment will be considered through invoice as PPE but if you go to buy the PPE physically the invoice should not show the other charges