28 November 2012
A company purchases chairs (Plastic) Rs.8000/.Does it need to expense out whole amount or the same will go in Office Equipment and invemtory would be maintained.What if it costs only Rs.1800/.??
28 November 2012
It is advisable to account as Fixed asset (office equipment) as the cost of chair is Rs.8000/- which is substantial. Even the cost is Rs.1800/- you have to consider as fixed asset and inventory to be maintained.
Generally, if each item cost of fixed asset less than Rs. 5000/-, the entire amount should be written off as depreciation.
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