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Accounting of TV stand

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(Querist)
31 December 2009 A co - operative organaisation or trust have purchased TV Stand costing Rs. 10000
Should it be capitalised or treated as expense
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CA.SHAHZAD SAYYED

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CA.SHAHZAD SAYYED (Expert)
31 December 2009 Dear Haresh
Purchase of Capital Assets in excess of Rs.5000 must be capitalised, therefore if your co. shwoing Cost of TV in Balance Sheet then you should add the stand Cost else show in Bal. Sheet Separatly
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CA.ViVeK M ACA

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CA.ViVeK M ACA (Expert)
31 December 2009 I do agree the above view, it would be better to include the same in the furniture and fixtures category and applicable rate of Dep.
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vanisri

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vanisri (Expert)
31 December 2009 It is absolutely right as amount is more that 5000. Because of the stand the value of the TV increases. So, it is capital in nature.
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Murtaza I Bhagat

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Murtaza I Bhagat (Expert)
31 December 2009 I agree about all the Views

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