Please Help: Accounting Treatment of Fixed Asset
Posted Date : 11-Apr-2015 , 09:53:44 am | Posted By Sunil
Company purchases a Laptop and then gives it to employees. Company recover full amount from the employees salary on monthly basis towards laptop. At the same time CO is claiming depreciation in its books. Company is showing this recovery as advance received from employees. My Query is: 1. Can Company carry this laptops a FA in its books? 2. Is treatment of Advance correct, How is it to be treated? 3. How does this treatment of advance distort the balance sheet? 4. Whats the ideal treatment for above transaction ?
Category : Accounts | Answers : 0 | Comments : 1 | Hits : 942
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Y.K.Bhushan
13-Apr-2015 , 10:47:30 amThis advacnec from employee can be treated as security againt lap top , refundable in due course at the time of leaving of employee or returning the lap top to the company.