Non Current Assets — OpenTuition Forums

MIMuhammad Irfan6y ago

Hi Need to ask that if an entity pays in advance for acquisition of a non current asset and will receive the asset later, how we will be recording this transaction in FS? Thanks

John MoffatTutor5y ago#1

I very much doubt that this would ever be relevant in Paper FA !! However the payment will be treated the same way as a prepayment until the asset is received. Once the asset is received then the prepayment will be transferred to the asset account.

MIMuhammad Irfan5y ago#2

Thanks!

John MoffatTutor5y ago#3

You are welcome :-)

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