Fixed assets

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amruth (Querist)
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27 December 2013 Dear All

By how much value we can take as Fixed assets .

in your company purchases a Battery of Rs.7000/- can we take it as fixed assets.

Other wise it comes under which head
Thanking You

Amruth kumar

Ganeshbabu K

Ganeshbabu K (Expert)
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27 December 2013 it is not a fixed asset charge it to profit and loss account as a repairs and maintance

amruth

amruth (Querist)
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28 December 2013 Dear Sir,

Another question by what amount we can take into fixed asset.

My friend is telling a value that cross Rs.5000/- then it comes under fixed asset, is it true.

Thanking You

Amruth Kumar

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CA Sanjeev Kumar

CA Sanjeev Kumar (Expert)
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28 December 2013 An item to be booked as "assets" when all condition are meet ;
1. It give the future economic benefit, means to be used in business.
2. There is cost/fair value.
3. there is control on the asset as how and when to use.
4. its life is more than a year.
5. amt is material. Material means 1% of gross sale or reasonable amt like 5k to 10k.

so on that basis, u can answer ur query by ur self...