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Current Assets
These are assets that will normally be converted in cash within a year or inside the operating cycle. The operating cycle is the duration in time considered by a unit to convert raw material in finished goods, in addition time to sell it and at last, plus time to get cash from debtors to whom goods are sold. For example, in a simple trading operation, we use cash to buy merchandise and sell it to recover cash. The operating cycle wherein a situation will consist of the period for that, merchandise inventory and receivables are held. The cycle begins with cash and ends along with the collection of cash. Current Assets are liquid and current liabilities can be met from the realization of them.
i buy machine 70% cash 30% installments.i have charged 100% cost to asset and capital so when i pay first installment i debit installment expense and credit bank so my question is
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procedure followed in govt.system of accounting in india
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