diff --git a/erpnext/assets/doctype/asset/asset.json b/erpnext/assets/doctype/asset/asset.json
index cdccf81507b..d8b8bf18a15 100644
--- a/erpnext/assets/doctype/asset/asset.json
+++ b/erpnext/assets/doctype/asset/asset.json
@@ -202,8 +202,7 @@
    "fieldname": "purchase_date",
    "fieldtype": "Date",
    "label": "Purchase Date",
-   "mandatory_depends_on": "eval:!doc.is_existing_asset",
-   "read_only": 1,
+   "mandatory_depends_on": "eval:!doc.is_existing_asset && !doc.is_composite_asset",
    "read_only_depends_on": "eval:!doc.is_existing_asset && !doc.is_composite_asset"
   },
   {
@@ -583,7 +582,7 @@
    "link_fieldname": "target_asset"
   }
  ],
- "modified": "2024-01-05 17:36:53.131512",
+ "modified": "2024-01-15 17:35:49.226603",
  "modified_by": "Administrator",
  "module": "Assets",
  "name": "Asset",
diff --git a/erpnext/assets/doctype/asset/asset.py b/erpnext/assets/doctype/asset/asset.py
index 3db4a8d18bd..dc1ab378eee 100644
--- a/erpnext/assets/doctype/asset/asset.py
+++ b/erpnext/assets/doctype/asset/asset.py
@@ -61,6 +61,7 @@ class Asset(AccountsController):
 	def on_cancel(self):
 		self.validate_cancellation()
 		self.cancel_movement_entries()
+		self.cancel_capitalization()
 		self.delete_depreciation_entries()
 		self.set_status()
 		self.ignore_linked_doctypes = ("GL Entry", "Stock Ledger Entry")
@@ -831,6 +832,16 @@ class Asset(AccountsController):
 			movement = frappe.get_doc("Asset Movement", movement.get("name"))
 			movement.cancel()
 
+	def cancel_capitalization(self):
+		asset_capitalization = frappe.db.get_value(
+			"Asset Capitalization",
+			{"target_asset": self.name, "docstatus": 1, "entry_type": "Capitalization"},
+		)
+
+		if asset_capitalization:
+			asset_capitalization = frappe.get_doc("Asset Capitalization", asset_capitalization)
+			asset_capitalization.cancel()
+
 	def delete_depreciation_entries(self):
 		if self.calculate_depreciation:
 			for d in self.get("schedules"):
diff --git a/erpnext/assets/doctype/asset_capitalization/asset_capitalization.py b/erpnext/assets/doctype/asset_capitalization/asset_capitalization.py
index 92cb85d1b7c..38c8de2beea 100644
--- a/erpnext/assets/doctype/asset_capitalization/asset_capitalization.py
+++ b/erpnext/assets/doctype/asset_capitalization/asset_capitalization.py
@@ -72,11 +72,28 @@ class AssetCapitalization(StockController):
 		self.update_target_asset()
 
 	def on_cancel(self):
+<<<<<<< HEAD
 		self.ignore_linked_doctypes = ("GL Entry", "Stock Ledger Entry", "Repost Item Valuation")
+=======
+		self.ignore_linked_doctypes = (
+			"GL Entry",
+			"Stock Ledger Entry",
+			"Repost Item Valuation",
+			"Serial and Batch Bundle",
+			"Asset",
+		)
+		self.cancel_target_asset()
+>>>>>>> efe9f6656f (fix: Cancel asset capitalisation record on cancellation of asset and vice-versa)
 		self.update_stock_ledger()
 		self.make_gl_entries()
 		self.restore_consumed_asset_items()
 
+	def cancel_target_asset(self):
+		if self.entry_type == "Capitalization" and self.target_asset:
+			asset_doc = frappe.get_doc("Asset", self.target_asset)
+			if asset_doc.docstatus == 1:
+				asset_doc.cancel()
+
 	def set_title(self):
 		self.title = self.target_asset_name or self.target_item_name or self.target_item_code