20 February 2018
Dear Sir, I have some confusion in classification of few items :- 1) Quick heal antivirus purchased for 3 years , whether to classified as "software under Asset" or "Printing & Stationery under expense". 2) Hard disk purchased for computer to be classified as "computer under Asset " or "Priting & stationery under expense"
22 February 2018
An items will be considered as asset if its utility is more than 1 year. If the validity of anti-virus is mentioned for more than 1 year. It has to be classified as an asset. It has to be amortized within period of 5 years. Similar analogy will apply for hard disk as well. It will be classified as computer and depreciation charged accordingly.
CAclubindia
