Capital accounting and depreciation
This query is : Resolved
29 May 2020
Dear Sirs
I am a retired chemical engineer and I just started using a bookkeeping software for my business accounting. I have a query.
I purchased a website of my own by paying Rs 5000 to Godaddy.com. Also I paid Rs 20000 for developing the contents of the website. Some of the 5000 Rs will be good for 2 years after which annual renewals and payments will be required to keep my website alive. I am registered with GST also.
1. How should I show this in the accounting books. with regard to each of the payments.
2. How much depreciation is to be taken as per existing rules.
Please guide me. Thanks
R.Muthukrishnan
I am a retired chemical engineer and I just started using a bookkeeping software for my business accounting. I have a query.
I purchased a website of my own by paying Rs 5000 to Godaddy.com. Also I paid Rs 20000 for developing the contents of the website. Some of the 5000 Rs will be good for 2 years after which annual renewals and payments will be required to keep my website alive. I am registered with GST also.
1. How should I show this in the accounting books. with regard to each of the payments.
2. How much depreciation is to be taken as per existing rules.
Please guide me. Thanks
R.Muthukrishnan
29 May 2020
Capitalise 25,000 as intangible asset and charge it over a period of 2 years as it's valid for 2 years.
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