Asset Purchase

Asset Purchase

LEARNING OBJECTIVES:

Recording Asset Purchase

When you buy a Fixed Asset, like machinery, furniture etc you incur ancillary expenses on it life transport, insurance, registration etc. All the expenses incurred till the point such asset is put to use is capitalised and added to the cost of the asset. This cost needs to be recorded in the Accounting Software.

In this section, we will explain how this needs to be recorded.

Recording Asset Sale

When an Asset is sold, the receipt needs to be recorded in the software and any profits arising thereof recorded. This section deals with how this needs to be recorded in the Accounting Software.

Recording Depreciation

Depreciation is recorded in the software while doing the year end processing. This needs to be recorded at a fair percentage calculated according to the wear and tear or according to the prescribed laws. This section will teach you how depreciation is recorded in Moiboo Software.