Fixed assets

Francis Kottaram (Querist) 05 September 2011 This query is : Resolved
In our society an electronic system called "Autopump System" is installed and its cost is shown in FIXED ASSETS of our accounting. At the same time the cost of this 'Autopump system' is not shown in expenses.
This equipment's warranty & guarantee was only for one year.
Is this Accounting system correct?

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Raj Kumar Makkad (Expert) 05 September 2011
If it as been assets side and bill has correctly been cleared then there is no deficiency in accounting.

Chanchal Nag Chowdhury (Expert) 05 September 2011
What is the nature of the cost? It should be E'ty costs which must have been accounted for under the head 'Electricity'.So, where is the problem.

SAANJAAY GUPTAA (Expert) 06 September 2011
I agree with experts

Advocate. Arunagiri (Expert) 06 September 2011
The cost would have come under a different heading.

For further clarifications you may post your query to CAClub.

Sailesh Kumar Shah (Expert) 06 September 2011
follow advise of Expert : Advocate Arunagiri

prabhakar singh (Expert) 06 September 2011
yeah! i too agree .to have a better concept,you should pursue the query on the calubindia, as they should be considered right pepole to speak authoritatively over matters relating to accounts.

girish shringi (Expert) 09 September 2011
Autopump system is the property of the society can be shown in the fixed assets.

Hopwever, the society can show depreciation on the same every year up to 33% and file returns accordingly.

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