Dear all,
I have purchased furniture of Rs. 20000 from wood works ltd. in june 2013 and done the entry
Furniture & fittings A/c - dr. 20000
To Wood works ltd. 20000
Wood works ltd. A/c -Dr. 20000
To Bank A/c 20000
Is this entry correct , if yes then do I need to do any rectification entry for capitalisation as I already taken them in fixed assets as furniture.
At the F.Y. end, I am asked to capitalise the expenses entry.