Assets and Types of Assets in Tally Prime

 

Assets and It's Types

A Resources owned by individual or Company that generates cash flows over

 long Term.

Assets have economic Value and can be exchange and sold. 

 

Classification of Assets

 

1) Convertibility

(i) Current (Short Term)

(ii) Non-Current (Long Term)

 

2) Physical Existence

(i) Tangible

(2) Intangible

 

3) Usage

(i)Operating

(ii) Non-Operating

 

Tangible Assets

A tangible asset is an asset that has physical substance. Examples include

 inventory, a building, rolling stock, manufacturing equipment or machinery,

 and office furniture. There are two types of tangible assets: inventory and

 fixed assets.

 

Current (Short Term)

(Cash < 1 Year)

Convert in Cash under less than 1 Year. 

Example-

Cash and deposits

Account Receivables (Debtors)

Short Term Investment

Short Term Loan & Advance

Pre Paid Exp.

Insurance, Contractors

Inventory (Stock)

Raw Material

Work In Progress  

Finished Goods

 

Non-Current (Long Term)

(Cash > 1 Year)

More than one Year to Covert to Cash.

Example-

Fixed Assets

Land and Building

Plant and Equipment

Furniture and fixtures

Long Terms Investment

Stocks

Bonds

Fixed Deposit (More Than 1 Year)

Mutual Fund

Vacant Land

Intangible Assets

 

An intangible asset is a non-monetary asset that has no physical nature. It

 cannot be touched or felt.

 

Monetary assets are financial assets, such as cash, accounts receivable and

investments, because they represent an entity’s right to receive cash or

 another financial asset from another party, the customer.

 

Example-

Patents

Trademarks

Copyrights

Goodwill and Brand

Internet – Domain, Website

Proprietary Items-Blueprint, Software, Data bank, Records, Content Etc.

Other Assets

Non-Current Receivables

Fictitious Assets