Fixed Assets accountin

Pratik21

Hi
Can Someone Guide the Exact process of Fixed Assets Accounting
How do we capitalise the same & the Depreciation

Regards
Pratik

amit_dwivedi85

hi pratik ,

In the F.A A/c, Any amount paid for the F.A.& ready for use can be capitalise Example-In the case of Machinery installation related all charges will B capitalise & also cheaking of product is also.......

Amit Dwivedi

btl_shiva

Quote:

Originally Posted by Pratik21

Hi
Can Someone Guide the Exact process of Fixed Assets Accounting
How do we capitalise the same & the Depreciation

Regards
Pratik

Hi
Fixed Asset Cost includes Purchase Price of the Asset + Taxes + Installation & Erection Charges

Journal Entry goes like this

Dr Fixed Asset 125000
Cr Bank/Cash 125000

Fixed Asset shown in Balance Sheet at Gross Value
Depreciation on Assets is charged as per applicable rates either at WDV method or Straight Line menthod.