Srikanth D (Occupied.) (168 Points)
29 January 2013A Pharmacy - which is a part of a Society , received Fixed Assests (like A/c,Refrigerators etc) from a Medicines company for free .
How should the assets be recorded in the books?
For what value should those assets be shown in Balance Sheet? i.e For a nominal value or market value of the asset ?
Should depretiation be provided?
Devendra
(Chartered Accountant)
(4775 Points)
Replied 29 January 2013
The Assets should be recorded at Market Value and should be depreciated at the rates prescribed by the Income Tax Act, 1961.
Regards,
Devendra Kulkarni
V P Narasimhan
(Accounts Manager)
(791 Points)
Replied 11 February 2013
Normaly Free items can't be clasified under Assets. In order to verify for Physical Verification the book value can me marked as Rs:1/- or so (purely for identification purpose) If I am right.
CA Ashish Gupta
(Internal Audit GST Balance Sheet Income Tax )
(55 Points)
Replied 12 February 2013
at nominal values..
& Depriciation cannot be claimed
CAclubindia
