How to Record Purchased Fixed Assets with GST Invoice in Tally Prime

Purchased Fixed Assets With GST Invoice

When a business buys a fixed asset such as machinery, equipment, or a vehicle, it needs to record the transaction in its accounting system. This is important not only for tracking the company's assets but also for complying with tax laws. In India, businesses are required to pay Goods and Services Tax (GST) on fixed assets purchases, and it is crucial to record these transactions accurately in the books. In this article, we will guide you through the process of recording purchased fixed assets with a GST invoice in Tally Prime.

Step 1: Create a Fixed Asset Ledger

Before you can record a fixed asset purchase in Tally Prime, you need to create a fixed asset ledger. To do this, go to the "Accounts Info" menu and select "Ledgers." Then, click "Create" and select "Fixed Asset" as the ledger group. Give your fixed asset ledger a name, such as "Plant and Machinery" or "Computer Equipment," and fill in the relevant details such as the purchase date, cost, and depreciation rate.

Step 2: Record the Purchase Invoice

To record a purchase invoice in Tally Prime, go to the "Accounting Vouchers" menu and select "F9 Purchase." Enter the supplier's details and the purchase invoice number. In the "Name of Item" field, select the fixed asset ledger you created in Step 1. Fill in the purchase amount, and the applicable GST rate will be automatically calculated based on the ledger's GST details.

Step 3: Record the Payment

Once you have recorded the purchase invoice, you need to record the payment. Go to the "Accounting Vouchers" menu and select "F5 Payment." Enter the supplier's details and the payment amount. In the "Particulars" field, select the fixed asset ledger, and Tally Prime will automatically assign the payment to the asset.

Step 4: Record Depreciation

Fixed assets lose value over time, and businesses need to account for this depreciation in their books. Tally Prime makes it easy to record depreciation by automating the process based on the fixed asset ledger's depreciation rate. To record depreciation, go to the "Accounting Vouchers" menu and select "F7 Journal." Enter the fixed asset ledger in the "Debit" field and select the appropriate depreciation ledger in the "Credit" field. Tally Prime will automatically calculate the depreciation amount based on the ledger's depreciation rate and the asset's value.

Conclusion

Recording purchased fixed assets with a GST invoice in Tally Prime is a straightforward process that involves creating a fixed asset ledger, recording the purchase invoice and payment, and recording depreciation. By following these steps, businesses can accurately track their fixed assets, comply with tax laws, and make informed financial decisions. Tally Prime's user-friendly interface and automation features make the process simple and efficient, enabling businesses to focus on their core operations.