Capitalization or expense

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This discussion explores the accounting treatment for office purchases, specifically whether to capitalise or expense items like stabilisers, laptops, and mobile batteries. The consensus suggests that lower-value items or replacements, such as a Rs 2500 stabiliser or a mobile battery, should generally be expensed, possibly under 'office repair & maintenance'. Laptops, however, are typically capitalised. When purchased together on the same bill, the decision depends on the individual item's value and nature.

RAKESH

RAKESH (Querist)

27 June 2021 I need to ask that that we have purchased stabiliser for office use. What is the head to be opened for this in booking in books.

2. If we purchase the laptop and mobile battery in the same bill. We capitalise the both the item ( laptop & battery) or expense battery & capitilise laptop.

CMA Poornima Madhava

CMA Poornima Madhava (Expert)

27 June 2021 Laptop may be capitalized.
Battery for phone seems like a replacement and the same may be treated as an expense.
Stabilizer (if the value of insignificant) may also be treated as an expense.

RAKESH

RAKESH (Querist)

27 June 2021 What is the suitable head to be kept for purchase of stabiliser ( value is Rs 2500 Only).

And in the same bill the laptop and battery is purchased. In that case also we need to expense and capitalised. Pls support with your valuable answer