Pass the entries for purchase of following Assets  

 

Furniture and Fixtures

8 Chairs purchased @ 1000 each from DD Furnishers.Rs 300 freight was paid extra for delivery of chairs

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Computers

5 Computers purchased for 30000 each from Vijay Computers.They took Rs 1000 per computer extra for installation

Later, computer RAM got damaged.New RAMof 1 GB was purchased by cash for Rs 1500 to existing RAM of 1GB

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Car

Car Purchased Rs 500000+ Rs 30000 Registration charges from DD Motors .

He also paid cash Rs 10000 to get car accessories and Rs 2000 to get car petrol fuel tank full

After 6 months, Car met with an accident, he paid Rs 70000 to get car repaired and Rs 40000 to get CNG fitted into car to Ravi Mechanic

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Machinery

10 April Machinery purchased for Rs 1000000 from AB Machineries

15 April Rs 30000 cash was paid to labor to get machinery installed.

18 April Rs 80000 was paid for technical inspection and commissioning of machinery and 60000 for post installation maintenance to Alex Engineers

20 April Machinery was finally installed and production started

 -a-

On 10 th April

Machinery  WIP  a/c Dr  1000000

  To AB Machineries  a/c  1000000

 

On 15 th April

 Machinery  WIP   a/c  Dr  30000

   To Cash a/c  30000

( Labor charges capitalized)

         

On 18 th April

Machinery WIP  a/c  Dr  80000

Repair and Maintenance Expense  a/c  Dr  60000

  To  Alex Engineers  a/c 140000

 

Alex Engineers  a/c  Dr  140000

  To  Bank  a/c 140000

                  

On 20 th April

Machine a/c  Dr 1110000

  To Machine WIP  a/c 1110000


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CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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