Tally entry

Gunjan Tulsyan (Article) (222 Points)
Replied 16 September 2012

if its cost is more than Rs.5000 then capitalise it as fixed asset so pass the following entry:

Fire Extinguisher/Office equipment A/c Dr. xxxx

To Cash/Bank/Party A/c xxxx

To VAT Payable A/c xxx

Remove VAT payable account in case ur a Service Industry. Or else in case it is worth Less than Re.5000 then Expense it out as office expense:

Office Expense A/c Dr. xxxx

To Cash/Bank/Party A/c xxxx

I hope ur query is solved....!!!! :)

2 Like

Varshit Shah (Self Employed) (676 Points)
Replied 16 September 2012

Dear Jivanji

You have to expense out the cost of Fire extinguisher. Because you can not treat such euipment as Fixed Assets. As there is no such benefit will arise that will help you in day to day business. That is just for the Safety of your office. If you have smoke detection & automatic water supply facility then only you have to capitalise such thing.

Cash Purchase : Repairs & Maintenance A/c......Dr
                                     To Cash

Credit Purchase : Repairs & Maintenance A/c.........Dr
                                      To Creditors A/c

                             Creditors A/c.....................Dr
                                      To Bank A/c.

@ Gunjan : Dear how can u credit VAT payable on purchase of item? How can it be VAT Payable? You already paid while purchasing it.

                       Corrected entry for your knowledge :

Extinguisher/Office equipment A/c Dr. xxxx
VAT Paid A/c Dr. xxxx
To Cash/Bank/Party A/c xxxx

1 Like

Varshit Shah (Self Employed) (676 Points)
Replied 16 September 2012

Dear Jivanji

You have to expense out the cost of Fire extinguisher. Because you can not treat such euipment as Fixed Assets. As there is no such benefit will arise that will help you in day to day business. That is just for the Safety of your office. If you have smoke detection & automatic water supply facility then only you have to capitalise such thing.

Cash Purchase : Repairs & Maintenance A/c......Dr
                                     To Cash

Credit Purchase : Repairs & Maintenance A/c.........Dr
                                      To Creditors A/c

                             Creditors A/c.....................Dr
                                      To Bank A/c.

@ Gunjan : Dear how can u credit VAT payable on purchase of item? How can it be VAT Payable? You already paid while purchasing it.

                       Corrected entry for your knowledge :

Extinguisher/Office equipment A/c Dr. xxxx
VAT Paid A/c Dr. xxxx
To Cash/Bank/Party A/c xxxx

2 Like

Neeraj Singh (Executive Account) (94 Points)
Replied 17 September 2012

Dear All in my openion ... Entry Should Be..

Office Equipment Dr

Vat Recoverable Dr

To Cash/Bank

(If you Purchase fire Extinguisher and if your have TIN no. you can claim vat in next F.Y. in two part)

(If your Refill the Fire extinguisher then it will Dr. to Rep. & Matin.)

fire extinguisher

Read more at: /forum/tally-entry-220587.asp#.UFbAVK5n-9s

fire extinguisher

Read more at: /forum/tally-entry-220587.asp#.UFbAVK5n-9sFire

ANJALI NEGI (Chartered Accountant) (1263 Points)
Replied 17 September 2012

i agree with neeraj

Arif Ali (Apt Co Advisory) (1230 Points)
Replied 17 September 2012

yaa agree with neeraj

Ashish Kukreja (CA Final Student) (587 Points)
Replied 17 September 2012

I think fire extuingisher purchase should be treated as an asset rather than repair & maintenance item..I agree with neeraj that if refilled then only repair & maint..

Gunjan Tulsyan (Article) (222 Points)
Replied 17 September 2012

@ varsh*t thank you for correcting me...i actually haver mistaken the transaction...sorry the error is regretted...!!!

PRANIT (ACCOUNTANT) (219 Points)
Replied 18 September 2012

RESPECTED NEERAJJI

WHY U DEBITING VAT RECOVERABLE ACCOUNT IN UR POST

PLEASE CLARIFY........

Neeraj Singh (Executive Account) (94 Points)
Replied 18 September 2012

Becoz it will treat as an assets (Current Assets)

Next year when you will take credit of vat ,then it will be credited by laibility account (CST or VAT) Payable.

sachin jadhav (CA) (34 Points)
Replied 11 September 2016

i purchase fixed assets but credit base how pass entery in tally and which voucher entery

balbir (self) (37 Points)
Replied 29 February 2020

Sir Maine Apne Instruments ka Certification kraya Hai uska jo bill aya hai uski entry kis head me hogi please suggest me

Ayush Lakhotia (43 Points)
Replied 16 April 2021

What will be a entry in tally of purchase two scooter activa aviator for office use payement done of both scooter at with one bank cheques to scotter company what will be the entry of fixed assets and payement and journal voucher entry