Post by account_disabled on Mar 7, 2024 4:10:12 GMT
The of fixed asset is acquired then the acquisition price must be allocated to each fixed asset. For example when purchasing a building and land the acquisition price is allocated to the building and land. The basis for allocation used is as far as possible based on the relative market price of each asset namely in the case of purchasing land and buildings the market price of the land and the market price of the building are sought each of these market prices is compared and becomes the basis for the allocation of the acquisition price.
Installment Purchases Obtained from installment purchases the acquisition price of fixed assets B2B Email List may not include interest. Interest during the installment period whether clearly stated or not separately must be excluded from the acquisition price and charged as interest expense. year a journal is made in payments which reduces the debt by the amount of the loan principal repaid and debits interest costs for the year concerned and credits cash in the amount of the installments. Exchanged with Valuable Letters Obtained by exchanging it for company shares or bonds recorded in the ledger at the market price of the shares or bonds used as exchange.
If the market price of shares or bonds is unknown the acquisition price of the fixed asset is determined at the market price of the asset. If the market price of the securities and fixed assets being exchanged is unknown then in such circumstances the exchange value is determined by the decision of the company leadership. This exchange value is used as the basis for recording the acquisition price of fixed assets and the values of securities issued. Exchange of fixed assets for company shares or bonds will be recorded in the Share Capital or Bonds Payable account at their nominal value the difference between the exchange value and the nominal value is.
Installment Purchases Obtained from installment purchases the acquisition price of fixed assets B2B Email List may not include interest. Interest during the installment period whether clearly stated or not separately must be excluded from the acquisition price and charged as interest expense. year a journal is made in payments which reduces the debt by the amount of the loan principal repaid and debits interest costs for the year concerned and credits cash in the amount of the installments. Exchanged with Valuable Letters Obtained by exchanging it for company shares or bonds recorded in the ledger at the market price of the shares or bonds used as exchange.
If the market price of shares or bonds is unknown the acquisition price of the fixed asset is determined at the market price of the asset. If the market price of the securities and fixed assets being exchanged is unknown then in such circumstances the exchange value is determined by the decision of the company leadership. This exchange value is used as the basis for recording the acquisition price of fixed assets and the values of securities issued. Exchange of fixed assets for company shares or bonds will be recorded in the Share Capital or Bonds Payable account at their nominal value the difference between the exchange value and the nominal value is.
