Dear it purchase AC for business purpose so it is capital expenditure not drawing and the same asset is eligible for depreciation
CA Raman Kumar
(job)
(132 Points)
Replied 20 June 2012
Dear it purchase AC for business purpose so it is capital expenditure not drawing and the same asset is eligible for depreciation
Ramanuj
(Accountant.)
(834 Points)
Replied 20 June 2012
if any equipment used for personal then it is treated Drawing a/c & office used then capital expediture.
Amit Kumar Verma
(Article)
(21 Points)
Replied 21 June 2012
If a AC Purchase by a AC Dealer and fixed it in Showroom then i think it is a Fixed Assets,
If AC is Installed in Dealer Home then it should be a Drawing
Giriraj Sharma
(Accoountant)
(26 Points)
Replied 21 June 2012
I have a problem that some scrap material is sold and advance amount is received which is extra to the sales and the scrap vendor does get the extra amount back till the end of FY. how can i adjust this. Can this be adjust in the next FY sale
pankaj kumar
(studying )
(186 Points)
Replied 21 June 2012
use ur own mind... think n den rply......... who say its purchase.
pravin singh
(article)
(60 Points)
Replied 25 June 2012
CA Sagar Dedhia
(Unemployed)
(67 Points)
Replied 25 June 2012
Petty cash account can be maintained but not under indirect expenses.
Amount should be transferred from cash in hand and on excess at the end of year it should be reversed if not it should be kept as current asset.
It cannot be expensed and kept in P&L a/c
CA Karan Lodhi
(CA and B.com(hons.))
(879 Points)
Replied 27 June 2012
This is capital expenditure done by the dealer.He will claim depreciation on this expenditure.
how can it be his drawings??
See the concept of drawing comes only when if the expense is personal in nature and does not belong to the business.Any amount incurred during the course of business or for smooth running of business is business expenditure hence benefit is available.
CA Karan Lodhi
(CA and B.com(hons.))
(879 Points)
Replied 27 June 2012
Dear Aspirants.
We take any item bought in our purchase A/c if that item is our stock-in-trade i.e if we deal in that product or article (if we are buying that item for further purchase).In this case AC is installed in the show room so it can not be treated as purchase.
If a dealer deals in sale purchase of AC then in that case buying of AC will be journalised in purchase A/c as it (A.C) will be stock in trade in that case. Hope u understand the concept
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
CAclubindia
