Materials used for office purpose

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Have a great evening to all, I need some clarfications from the following discussion: We are the trader of tiles and sanitaryware. We used the tiles for the renovation of the 2nd floor. How can we book the used tiles in firm books and it is a partnership firm. We are also maintain the intergrated accounting with tally erp. How can we books the used tiles for office purpose and how to reduce the used tiles in inventory
Replies (11)
If the renovation is a major one, extending the life of the facility, the cost has to be capitalised. In which case, the amount shall be transferred from inventory to capital work in progress till the same is ready for use and capitalised thereafter.
Else, if it is in the nature of normal repairs, the amount shall be transferred from inventory to repairs and maintenance.

What is "used"? is; used = second-hand ? Or have you used new tiles ? Anyways the (owned) tiles used will be accounted along with change on value effected by time.

YOU HAVE PURCHASED TILES  WITH INTENSION TO SOLD, BUT YOU ARE NOT SOLD..... SO UP TO EXTENT OF MATERIALS USED IN OFFICE DOESNOT COME UNDER PURCHASES  SO DECREASE THE PURCHASES 

In my opinion, the used tiles cannot be reduced from purchase. In case of major repairs, cost of tiles has to be capitalized and for minor repairs they are needed to be shown in the Profit & Loss account.

Thank you for nice response to all, 
We owned tiles used for renovation of entire floor is consisting of 1000sft costing of Rs.300000/-. Can be spent on sigle time, it can be capitalised. If capitalised , how can we pass entry with inventory items(Inventory also reduce from closing stock) Please  give your valuable suggestions 

You need to give credit to the Inventory as the inventory is reducing and debit the asset or in this case if it is not completed, you need to debit the work in progress

as per your suggestions,

Inventory items has not supported when i pass the journal entry in tally erp.  How can I do ? 

You need to enable the Inventory module in TALLY. For doing so, you need to go to GATEWAY OF TALLY. Press ALTF3 and maintain the Accounts with Inventory.

Capital WIP Dr

To Inventory

Building/ Fixed Asset Dr

To Capital WIP

 

 

 

 

Thank you verymuch for your nice clarifications and your kind attention !!!

I will follow your suggestions.............Thank Q you to all...

how to make entry of the the same in tally under gst


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