Nirav Parijat (Head of Department) (30 Points)
29 January 2017Hi,
We are going to take property along with furniture & fixture. In 5 years down the line, the ownership of the furniture & fixture ownership will transfer to us.
In such case which agreement going to make and explain the process.
Your all timely answer on above case appreciated.
Thanks,
Nirav
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(174880 Points)
Replied 29 January 2017
Segregate the agreements of property and furniture & fixtures.
For property it will be complete transfer with downpayment, while for furniture & fixtures it will be purchase on installments, with clause to complete the payment during 5 years.
Nirav Parijat
(Head of Department)
(30 Points)
Replied 29 January 2017
But this will be which agreement..
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(174880 Points)
Replied 29 January 2017
Agreement to sell only, only payment clause will be differed to 5 years installments.
Nirav Parijat
(Head of Department)
(30 Points)
Replied 29 January 2017
Thanks but how to show in our books of accounts ...We are limited company.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(174880 Points)
Replied 29 January 2017
The seller of the furniture would be creditor and the furniture would be added to fixed asset.
Nirav Parijat
(Head of Department)
(30 Points)
Replied 29 January 2017
Thanks, in this case the property owners and furniture owners are different
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(174880 Points)
Replied 30 January 2017
Doesn't make difference. Both the agreements would be different.
Nirav Parijat
(Head of Department)
(30 Points)
Replied 30 January 2017
Thanks...in terms of accounting is right?
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