Fixed assets purchase entry in tally erp 9 with gst
Table of Contents
- 1 FIxed asset accounting in tally erp 9
- 2 Which voucher type is used for entering Fixed asset
- 3 Fixed asset cash purchase entry
- 4 Fixed asset purchase using purchase voucher in Tally ERP 9
- 5 Activate fixed asset purchase in purchase voucher
- 6 Asset purchase entry using purchase voucher example.
- 7 Purchase Fixed Assets as Stock Item with GST
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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.
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,
Enter amount in the amount field. The final voucher will look like this.
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 group ‘purchase 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,
Gateway of Tally>F12 Configure>Voucher Entry
Allow expense/fixed assets in purchase vouchers : Yes
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
- Click on As Voucher Mode ( How to enter voucher in tally )
- To: Indus Motors ( Create sundry creditors ledger)
- By: Motor car ( Create Fixed Asset ledger in tally)
- Create CGST & IGST ledger.
- Enter amount,narration
Enter the voucher as shown in the images below.
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
- Create astock group namely Fixed asset
should quantities of item be added :Yes
- Create stock item under group Fixed asset.
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
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.
Press enter and save the voucher. Now in balance sheet only asset balance displayed. But no closing stock of asset will be displayed.