Here are the journal entries for the purchase and maintenance of fire extinguishers:
1. Purchase of Fire Extinguisher:
When a fire extinguisher is purchased, it can be recorded as a fixed asset or an expense, depending on the company's accounting policy.
a) Recording as a Fixed Asset:
If the fire extinguisher is treated as a fixed asset:
| Particulars | Debit (₹) | Credit (₹) |
|---|---|---|
| Fire Extinguisher (Fixed Asset) A/c | 10,000 | |
| To Cash/Bank A/c | 10,000 | |
| (Being fire extinguisher purchased) |
b) Recording as an Expense:
If the fire extinguisher is expensed directly:
| Particulars | Debit (₹) | Credit (₹) |
|---|---|---|
| Office/Building Safety Expense A/c | 10,000 | |
| To Cash/Bank A/c | 10,000 | |
| (Being fire extinguisher purchased) |
2. Maintenance of Fire Extinguisher:
Maintenance costs for the fire extinguisher should be expensed as they occur.
| Particulars | Debit (₹) | Credit (₹) |
|---|---|---|
| Maintenance Expense A/c | 1,000 | |
| To Cash/Bank A/c | 1,000 | |
| (Being maintenance of fire extinguisher) |
Summary:
- Purchase of Fire Extinguisher: Can be recorded either as a fixed asset or an expense.
- Maintenance of Fire Extinguisher: Recorded as an expense when incurred.
These entries help in accurately recording the purchase and maintenance of fire extinguishers in the accounting records.
