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What the entry for purchase and installing camera system in office and warehouse also?

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تاريخ النشر: 2015/05/05
Muhammad Taha Zaheer Qureshi
من قبل Muhammad Taha Zaheer Qureshi , Assistant accountant , Atrium Mall Management Private Limited

I am assuming that the nature of the business is other than selling and purchaing of camera. If that so then the accounting entry of your question would might be

Camera       Dr

                Cash       Cr

(To record purchase of Camera)

On the other hand installion of camera would also incur cost which is not a day to day expense and should be included in the cost of camera (please refer IAS16  Property, Plant and Equipment).

So you should include the installation charges  in above accounting entry (total amount purchase plus installation charges) an only this entry would be recorded rather than above 

Camera         Dr

        Cash           Cr

(to record purchase and installation of camera) 

 

Note: for your office and warehouse the above explanation is same for both.

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