Fixed assets

Fixed assets

Fixed Assets are those assets that are established buy it in order to use and help them to practice their activities for several years, and not the aim of the purchase is for resale, such as the purchase of land and buildings and cars and furniture and other production machines.

The accounting treatment of fixed assets
accounting treatment of fixed assets vary depending on how the access, and the ways in which it established the fixed asset are as follows:

cash purchase
to obtain originally from within a deal
to obtain originally as a gift or grant
to prove the assets in the case of a cash purchase of
fixed assets are recorded in the books, according to the costs, and the cost of the fixed asset is equal to the purchase price of the phenomenon on the invoice, plus all expenses incurred in obtaining origin such as transportation fees and charges and customs clearance, insurance and other fees and commissions (acquisition).

For example
, established the import machine for manufacturing the wooden doors have borne the following expenditures until the machine became ready for action:

the amount of
the price of the machine as the invoice 10000
transport fees, shipping and
insurance expenses
customs 500 200 2000
total expenses for the installation of the Machine 13000
journal entries note that these payments were made in cash.

Check the restriction and prove the cost of the asset by the purchase price shown on the invoice, plus all the expenses spent even become ready machine is equal to 13000 dollars:

Under the registration of the original
debtor creditor statement
13000 from h/machine
13000 to h/fund the
purchase cost of the machine in cash
to obtain originally from within a deal
in the case of the Procurement Committee established a group of assets one deal, first determine the cost of each asset to an end, according to the prevailing price in the market, and then extract the market rate for each by dividing the value of the asset with the total market values of assets, then we hit the percentage cost of purchase transaction, to determine the cost of each, the following example shows the way.

For example
, the established purchase a deal worth 7000 dollars in cash assets include the following: the furniture,computers,the engine cooling and devices.

Daily: express limitation of the procurement process after determining the actual cost of each asset purchased.

The Solution:
First: Determine the cost of each asset to an end, according to the price in the market (the market value of the asset), and suppose that the market value of each asset was as follows:

the amount of
furniture 3000
computers 2000
engine cooling and 5000
total market values of assets 10000
Secondly: extraction is the percentage of each of the market by dividing the market value of each of the total market value of the assets as follows: the

name of the original market value of the asset total market values of assets ratio asset market
furniture 3000 10000 30%
computers 2000 10000 20%
engine cooling and 5000 10000 50%
Total 10000 100%
Third: The extraction of the actual cost of the asset by hitting the market percentage extracted for each of the purchase price of the deal as a whole CALLE
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