Accounting of purchase of Furniture

This query is : Resolved

chiragjinu (Querist)
Follow

10 June 2011 Hi,
If we purchase the furniture costing below 5,000 in the 1st year of operation, then can we capitalized the same or we have to write back as 100%.

Is there any opinion of Institute on the said issue?

Pankaj Gandhi Jaiswal

Pankaj Gandhi Jaiswal (Expert)
Follow

10 June 2011 As per AS and also if this furniture is having long life you should capitalize this. Some company as a policy write off all the assets below 5000/- but its company policy matter and auditor gives proper disclosure of this in notes