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Please tell entries

Shivani (Learner) (1881 Points)

24 April 2014

21	17-Apr-14	Paid advance of Rs. 15000 to Compu Plaza in respect of purchase of Computer.
22	18-Apr-14	Computer of Rs. 40000 bought from Compu Plaza received in Office Premises. Invoice not received yet.
23	19-Apr-14	Invoice received from Compu Plaza in respect of Computer bought from it.
24	20-Apr-14	Balance payment of Rs. 25000 made to Compu Plaza.
25	31-Mar-15	Depreciation is charged on Computer bought from Compu Plaza.

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30 Replies

CA Shubham Sarraph (CA CS PROFESSIONAL M.COM) (555 Points)
Replied 24 April 2014

17 Apr. 14 Compu Plaza A/c Dr. Rs. 15,000

To Cash A/c

18 Apr. 14 Computer A/c Dr. Rs. 40,000

To Compu Plaza A/c

20 Apr.14 Compu Plaza A/c Dr. Rs. 25,000

To Cash A/c

31 Mar.15 Depreciation A/c Dr. Rs. 24,000

To Computer A/c

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Manoj Pandit (student) (139 Points)
Replied 24 April 2014

21 computer plaza a/c Dr to Cash/bank a/c 22computer a/c Dr to computer plaza a/c 23no entry 24computer plaza a/c dr to bank/cash a/c 25 depreciation a/c dr to computer a/c; p&l a/c dr to depreciation a/c..

Shivani (Learner) (1881 Points)
Replied 24 April 2014

shouldnt we pass 18-apr entry in receipt note

and treat computer as asset only when we receive invoice.

when will vat be given effect to?

on the day we receive goods with no invoice or on the day we receive invoice?

kailash garg (excise executive) (426 Points)
Replied 24 April 2014

sale of machine rate of duty charged in invoicing

LAKSHAY SINGLA (NIL) (30 Points)
Replied 24 April 2014

Ya entry should be passed on 19 instead of 18th

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Dilip (chief Accounts Officer) (79 Points)
Replied 24 April 2014

What accounting programme you are using, Tally or ERP

Sunil (Accountant) (21 Points)
Replied 24 April 2014

Purchase entery will be passed on purchase invoice date. In your case it will be 19 not 18. Vat will also be effective on invoice date ie. 19.

VIKASH KUMAR JAIN (Audit Executive) (711 Points)
Replied 24 April 2014

Agree with shivani and sunil.

ankur goel (article) (23 Points)
Replied 25 April 2014

It depends on invocie date

anil (student) (41 Points)
Replied 25 April 2014

I was wondering whether depreciation under income tax is to be calculated from the date of recording the advance or from thr date of actually receiving the computer

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Shivani (Learner) (1881 Points)
Replied 25 April 2014

Dear Vikash and Sunil

if u say that I pass purchase entry on 19th i.e. the day we receive invoice.

now suppose if teh goods are received on 31-mar and invoice is received on 3-apr, then shouldnt there be some entry on 31-mar to reflect the goods we have received to reflect true and fair position of our accounts.

now entry on 31-mar cant be purchase entry as we havent received invoice, then what will it be?

and one more thing what about the taxes, when will those be given effect to?

thanks

V Devaraj Rao (Asst. Manager - Finance) (84 Points)
Replied 25 April 2014

Dear Shivani,

For assets, depreciation in accounts has to be charged as per Co's Act and not as per IT Act and may be charged for the days of use. If the date of receipt of asset and date of invoice are same, date of receipt of invoice may be ignored and accounted accordingly.

But you have charged depreciation is as per IT Act wherein only block concept which is @ 60% and there are only two slabs as below:

1. Below 180 days

2. Above 180 days

Pls correct accordingly

Thanks