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Asset downpayment

This topic has 4 replies, 2 voices, and was last updated 3 years ago by Stephen Widberg.

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November 7, 2021 at 3:59 pm #640177
aadil1234
Member
- Topics: 75
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Sir hiw do we treat downpayment for asset, shohld we capitilize it as part of asset or record it as owner equity or investment??
Please explain the reason if u can. Than you
November 7, 2021 at 4:56 pm #640179
Stephen Widberg
Keymaster
- Topics: 15
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Deposit for asset not received – Prepayment
Asset received – capitalise
Not sure which exam this refers to.
November 7, 2021 at 6:18 pm #640182
aadil1234
Member
- Topics: 75
- Replies: 104
Sir I saw this question on an Acca page but was jot able to figure that which kit it referred to.
November 7, 2021 at 6:20 pm #640183
aadil1234
Member
- Topics: 75
- Replies: 104
Sir another question of mine is that will Prepayment Asset received will be in current assets or fixed asset?
November 8, 2021 at 1:23 pm #640225
Stephen Widberg
Keymaster
- Topics: 15
- Replies: 3341
I assume the asset would be physically received within 12 months – so presumably current asset.
🙂
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