Debit note regarding to capitalised assets.

[Guest]

Dear Expert,

please suggest regarding to debit note raised by us which is related with fixed assets (capitalised/depriciated) and I want to know best accounting treatment regarding it. Is we can raise debit note related to capitalised/ depriciated value or not ? please reply as soon.

Regard

Vikram Singh

[YAGAY andSUN]

Dear Vikram,

We are not able to understand your query. Please elaborate it, enabling us to revert.

Regards

YAGAY and SUN

(Consultants - Business, Management and Indirect Taxation)

[Guest]

Sir, I mean to say that we had purchase a Machinery and capitalize it. after one month we had been charged depreciation on it. but now we have require to raise debit note for related party than in this case we debit the party and credit the plant and machinery (wip), but we have been capitalize it. Now what head we will be credit however we have been capitalize it. we can't credit the plant and Machinery (wip) after capitalization and I think Plant and Machinery also we have been charge depreciation on this machine.. (please reply...)

Regard-

Vikram Singh

AI Summary

Accounting treatment for debit note on capitalised fixed assets and allocation of credit after depreciation. Whether a debit note may be issued for a fixed asset already capitalised and depreciated and which ledger heads to credit when the debit note is raised to a related party. The practitioner questions debiting the party and crediting Plant and Machinery or WIP after capitalisation and depreciation, and whether capital asset or depreciation accounts must be reversed, adjusted, or left unchanged while recording the related party balance.