How to show asset in the books??

[Guest]

Dear Sir,

One of the vendor of my companies has offered us to give a machine (FA) to use till we purchase the material from them.

When we will stop purchasing the material from them then they will take back the machine. So, my query is whether we have to show the Asset in the books..?? If yes, then how.??

Awaiting for your precious comments

AI Summary

Review Contract Terms to Assess if Machine is a Company Asset; Determine Value for Accurate Accounting Records. A company received a machine from a vendor to use until they stop purchasing materials from them, at which point the machine will be returned. The query is whether this machine should be recorded as an asset in the company's books. The response suggests reviewing the contract's terms and conditions, as the machine may qualify as an asset. However, it is necessary to determine its value for proper accounting.