How to account machinery price in balance sheet?



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I had purchased a machinery (fixed asset) worth 10 lakh and paid the full amount at one time. How should I show this amount of 10 lakh in my company balance sheet under fixed assets?

1 Answer(s)


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The machinery will be reported on the company's balance sheets (Asset Side, under fixed asset) at its cost minus its accumulated depreciation. The depreciation of the equipment will be reported as depreciation expense on the profit and loss statements during the years that the machinery is used.