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Fixed assets purchase entry in tally erp 9 with gst

Business purchases fixed assets for its operations like plant and machinery for manufacturing process, Land and building for setting up office and factory.Furniture and fittings,computers and software for office operations. When you buy fixed assets ,Input credit shall be allowed under gst rules in certain cases. So you may need to input the gst tax details also.Normally business keeps a separate register called Fixed asset register,but in tally erp 9 you can store fixed asset as stock item without affecting the stock in trade balance. Come let’s see how all these can be done through tally erp 9.

We are discussing the following scenarios of fixed asset

  • Fixed Asset entry with journal voucher.
  • Fixed asset with entry with purchase voucher .
  • Fixed asset entry with stock item.

FIxed asset accounting in tally erp 9

Which voucher type is used for entering Fixed asset

It is a bit confusing for beginners which voucher type is used for entering a fixed asset purchase.To account a fixed asset purchase in tally erp 9, normally we use journal voucher in earlier versions of tally.But now you can use purchase voucher to enter purchase of fixed assets in latest versions of tally erp 9. Let’s do using both the vouchers.

Example of Fixed asset purchased on credit with journal voucher

When purchasing a fixed asset on credit from a party we debit fixed asset and credit party account.let’s do the following example to enter a fixed asset purchase on credit.

Also Read : How to create sundry creditors ledger

XYZ company  bought Furniture for Rs 47200 from Woodland furniture on 01-04-2016 inclusive of gst.  Furniture 40000  CGST 3600 & SGST 3600.

Let’s enter this transaction into journal voucher of tally erp 9

First thing we need to enter a fixed asset purchase is creating a fixed asset ledger.  Also you should activate gst and create CGST & SGST Ledgers In case of local purchase or IGST ledger in case of interstate purchase.

More reading : How to create a ledger in tally erp 9

Go to Gateway of tally>Accounting Voucher>F7 Journal Voucher

Change date if required by pressing F2 key.

In the journal voucher enter Furniture after debit that is after By amount 47200 and party name after  To  amount 40000 CGST 3600 & SGST amount you have to calculate manually.see below image.

asset purchase entry in journal voucher with gstPress enter and save, That’s it your are done.

Fixed asset cash purchase entry

To enter cash purchase of Fixed asset, you can use cash payment voucher. for example you are purchasing a table of 5000 for cash.and don’t want to avail the input tax credit of gst then you can simply enter the transaction in a payment voucher by debiting asset.

To do this go to Gateway Of Tally>Accounting Voucher > F5 Payment

Change date if required,

Account :cash

Particulars: Furniture

Enter amount in the amount field. The final voucher will look like this.

fixed-asset-cash-purchasePress enter and accept the screen.

Fixed asset purchase using purchase voucher in Tally ERP 9

Normally assets purchased for re-sale is entered through purchase voucher.For example a car seller purchase cars for re-sale; in this case we enter car as an inventory through purchase voucher. Only ledger created under grouppurchase account’ can only be selected in the purchase voucher.Car purchased for staff or motor vehicles purchased for delivery is treated as fixed asset,and ledger motor car created under fixed asset group cannot select in a purchase voucher. Now what should we do to enter through purchase voucher ?

Latest versions of Tally ERP 9 Provides an option to enter assets purchase, lets see it below.

Activate fixed asset purchase in purchase voucher

To activate fixed asset purchase in purchase voucher,

Go to

Gateway of Tally>F12 Configure>Voucher Entry

Allow expense/fixed assets in purchase vouchers : Yes

allow-expense-fixed-assets-in-purchase-vouchers

The same option is available at

Accounting Vouchers > F9 Purchase > F12 >F12 ,Press twice

Asset purchase entry using purchase voucher example.

Lets enter the following example.

XYZ Company  bought Motor car for Rs 576000. from Indus Motors inclusive  gst @ 28% amounting 126000 and vehicle cost 450000

Assume  it is a cash purchase for learning purpose only( 200000 Lakh or more cash purchase is not allowed as per  Section 269ST), for asset purchase its always advised to enter the voucher in the name of party as a credit purchase, then make payment.

Go to Gateway of Tally> Accounting Voucher >F9 Purchase

  1. Click on As Voucher Mode ( How to enter voucher in tally )
  2. To: Indus Motors ( Create sundry creditors ledger)
  3. By: Motor car ( Create Fixed Asset ledger in tally)
  4. Create CGST & IGST ledger.
  5. Enter amount,narration

Enter the voucher as shown in the images below.

fixed asset purchase entry with purchase voucherPress Enter to accept the screen.

Purchase Fixed Assets as Stock Item with GST

  • The above methods are not giving you the number of fixed asset you have purchased and other asset wise stock details. to overcome this difficulty you can enter fixed asset purchase as a stock item. But you have to make sure that the value does not added to your stock in trade. How to do this.
  • Create Fixed asset Ledger

Inventory values are affected: Yes

Is gst applicable? : Applicable

set/alter gst details : No

should quantities of item be added :Yes

Press F12 from the stock item creation screen. choose option

Allow advanced entries in master :yes and save the screen.

set/alter gst details:  yes

Taxability: Taxable

enter gst rate of item.

Costing method : At zero cost ( this is very important to cancel double effect in balance sheet)

Now go to purchase voucher  activate invoice mode. Use Ctrl+v shortcut key.

Enter the purchase voucher as below.

fixed asset purchase entry with stock item

Press enter and save the voucher. Now in balance sheet only asset balance displayed. But no closing stock of asset will be displayed.

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Comments (8)

  • hello, I know how to book Fixed Assets Purchased but in cases where fixed asset is manufactured in house, What should be treatment of it? How can we show inventory bought and consumed for the purpose of creating Fixed Asset and how can we link that consumption of Inventory with the Fixed asset account created for that purpose.

    In Nutshell, I want to show fixed asset manufactured in the company factory by using Raw Material specifically purchased for production of Fixes Asset. Can it be possible in Tally ERP 9?

    Reply
    • You can book in house manufacturing of fixed asset this way.

      Create a ledger in the name of Fixed asset.for example Furniture Account
      Book all expense like purchase of raw materials,wages and other expense related to the production in the same ledger.
      The total of fixed asset ( furniture) account will be treated as the cost Fixed asset.

      Reply
  • I have a question regarding what should be the voucher for a downpayment purchase of a fixed asset

    For e.g A cement company purchasing a computer (fixed asset ) with 100 % down payment.

    Journal Entry of the same will be

    Fixed Asset A/c Dr
    To Cash/Bank A/c

    So will this come under Payment Voucher whilst purchasing on downpayment

    For a credit purchase the Voucher is Journal but as i said i was a bit confused as to what will the voucher for downpayment be either in cash or through cheque

    Reply
  • Dear, as we are not receiving corresponding item (fixed asset) or invoice from supplier at the time of down payment, we must debit the supplier and credit the cash.

    Eg:
    (Payment voucher)
    ABC ltd A/c Dr
    To Cash A/c

    Once you received your invoice you can record transaction for fixed asset

    Eg:
    Fixed asset A/c Dr
    To ABC ltd A/c

    Consider, you will get only cash/cheque receipt from your supplier when you pay them downpayment.

    And this you can record in payment voucher as well as journel

    Reply
  • if i have purchased some wooden cabinets for office & the installation charges entry if i suppose to post then how to do that?

    Reply
  • I have a question regarding the purchase of a fixed asset, how will entry in tally of Fixed asset & can we take input tax credit against Fixed asset biil.

    Reply
  • Hi
    My company in Dubai and my boss purchase flat for his personal use so how I can enter in tally

    Reply
  • Woodland furniture will go under which head during ladger creation?

    Reply

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