banner_ad

doubt

294 views 17 replies
we also purchase fixed assets in business to generate revenue...so as per u it is also an expense
Fixed asset gives u revenue for many years, goods we purchase to trade are for short time. Fixed asset is intended to use and not for sale.

In accounting language purchase material is called stock not assets (if purchase for trading).

There is difference between goods/stock and assets. Assets means which help to get the profit and which it not traded. While goods/stock is traded to get the profit.

So purchases is treated as nominal account.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured ARTICLESHIP 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 29 April 2026
Manager- Finance and Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details