A LTD COMPANY PURCHASE A CAR FOR THE USE OF ITS OFFICIAL PERPOSE AND IT GET A GOLD COIN FREE.HOW SUCH GOLD COIN WILL BE SHOWN IN THE BOOKS OF ACCOUNT? PLESE ANYONE ANSWER IT.
11 Replies
Chinmay
(Accounts Professional)
(356 Points)
Replied 31 October 2011
That's Good Question by Mr. Barun Nandi,
I think, the cost of gold coin will be treated as indirect income as discount from creditors & taken as assets. i.e.
Car A/c ............ Dr.
Other Assets A/c ............ Dr.
To Sundry Creditors A/c
To Discount From Creditors A/c.
In addition if the cost of that coin will be less than Rs.5,000/- then it should be expense out as Fixed Assets Less than Rs.5,000/-, & taken 100% Depreciation......
Girish Joshi
(D.G.M. (Commercial))
(37 Points)
Replied 31 October 2011
| Originally posted by : Barun Nandi | ||
 |
A LTD COMPANY PURCHASE A CAR FOR THE USE OF ITS OFFICIAL PERPOSE AND IT GET A GOLD COIN FREE.HOW SUCH GOLD COIN WILL BE SHOWN IN THE BOOKS OF ACCOUNT? PLESE ANYONE ANSWER IT. |
 |
Gold Coin .................. Dr
To Misc Income
OR
To Gifts Received
Best regards,
CA Neha Jain
(Practicing CA)
(218 Points)
Replied 31 October 2011
in my opinion, the gold coin should be treated as current investment as company will be willing to sell it on appreciation.
entry should be -
investments Dr (with the market value on date of purchase of car)
Car Cr
current investment will be revalued at each balance sheet date with market value.
if company intends to sell it in next three months, it should be added to cash equivelants for cashflow purpose.
Devendra
(Chartered Accountant)
(4775 Points)
Replied 31 October 2011
I am convinced with the Answer given by Neha Ma'am. It should be shown under Investment by passing the following entry:-
Gold Coin (Investment) Dr. XXXX
(Grouped under Investments)
To Car A/c XXXX
(Grouped under Fixed Assets)
[Being Gold Coin recorded as Investment]
Regards,
Devendra K
Bhaskar Unnikrishnan CPA CMA
(Accounts / Administration)
(414 Points)
Replied 01 November 2011
|
Originally posted by : CA Neha Jain |
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|
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in my opinion, the gold coin should be treated as current investment as company will be willing to sell it on appreciation. entry should be - investments Dr (with the market value on date of purchase of car) Car Cr current investment will be revalued at each balance sheet date with market value. if company intends to sell it in next three months, it should be added to cash equivelants for cashflow purpose. |
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Right answer for this case...
deepali agarwal
(Company Secretary)
(1289 Points)
Replied 01 November 2011
agree with neha mam...........
Hemanth Sai
(CA-FINAL,AUDIT TRAINEE)
(110 Points)
Replied 02 November 2011
agree with neha mam..
if it was encashed immediately then
cash a/c dr xxx
to car a/c xxx
Pandit Kolekar
(2 Points)
Replied 19 April 2018
one businessman has purchased gold of Rs 217924 in 2011-12 and sold Rs 254450 in 2017-18 so how to calculate capital gain tax on it and what amount of tax was pay to govt.
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