Fixed Asset Records Reconciliation FAQS

9 Fixed Asset Records Reconciliation FAQS

1.What is Fixed Assets Reconciliation process?

When a Company is incorporated, the Company will purchase fixed assets and it will estimate depreciation as per

Companies Act,
1956 and 2.Income Tax Act 1961.

Therefore order to keep a record of fixed assets, a Register is maintained, which is called "Fixed Asset Register". Fixed Asset Reconciliation is the cross check between Assets physically present and the Fixed Asset Register. Alternative type of Reconciliation is also done in terms of Depreciation Calculated as per Companies Act and Income Tax Act, where, using one of these techniques, the asset would have already nullified in the Books of Account and require to reconcile.

2.What uses of Fixed Assets Register?

Fixed Assets Register permits you to keep track of all your assets from initial purchase right through to disposition.

The Fixed Assets Register is divided into the following areas:

Fixed Asset Entry form to record and store info on your company’s assets and property. Asset Types Maintenance is used to define the different types of assets that you have in your business. In this section you can define the GL accounts that will be effected, with the transactions concerning to this asset type, the depreciation rates to be used and the depreciation method (Straight Line, Reducing balance, etc.).