Office plant, wall photes

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ABOOBACKER VP (Querist)
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31 January 2024 under which head can put Office plants and pots and wall photos worth AED 2000/-

Can put under expense Office plants and wall photos?

CA. Bhavik P. Chudasama

CA. Bhavik P. Chudasama (Expert)
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31 January 2024 It depends on your nature of business and how does these assets adds value to your Business

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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09 August 2024 When accounting for office plants, pots, and wall photos, the treatment depends on the nature and intended use of these items. Here’s how you might categorize and account for them:

### **1. **Office Plants and Pots**:

**Capital Expenditure:**
- **Nature**: If the office plants and pots are intended to be used for a significant period (generally more than a year) and enhance the office environment, they should be capitalized.
- **Accounting Treatment**: They would be classified under **"Office Furniture and Fixtures"** or **"Office Equipment"** in the fixed assets category. This is because they have a useful life beyond a single accounting period.
- **Depreciation**: Capitalized plants and pots would typically be depreciated over their useful life.

**Expense:**
- **Nature**: If the expenditure is on low-cost items or plants intended for temporary use, it might be classified as an office expense.
- **Accounting Treatment**: This could be classified under **"Office Supplies"** or **"Miscellaneous Expenses"**.

### **2. **Wall Photos**:

**Capital Expenditure:**
- **Nature**: If the wall photos are significant pieces of art or decorations that enhance the office ambiance and are expected to be used for several years, they should be capitalized.
- **Accounting Treatment**: They would be classified under **"Office Furniture and Fixtures"** or **"Office Decorations"** in the fixed assets category.

**Expense:**
- **Nature**: For less significant or lower-cost wall decorations, you may choose to expense them.
- **Accounting Treatment**: This could be classified under **"Office Supplies"** or **"Office Expenses"**.

### **Summary**:

- **Capitalized**: If the plants, pots, and photos are expected to last for a significant period (typically more than one year) and are integral to the office environment, they should be recorded as fixed assets.
- **Expensed**: If they are of relatively low value or are replaced frequently, you can record them as office expenses.

### **Example Entries**:

- **Capitalized Entry**:
- **Debit**: Office Furniture and Fixtures (or Office Decorations)
- **Credit**: Accounts Payable / Cash

- **Expense Entry**:
- **Debit**: Office Supplies / Office Expenses
- **Credit**: Accounts Payable / Cash

It is essential to follow your company’s accounting policies and local regulations for fixed assets and expense classification. If you are unsure, consulting with a professional accountant or financial advisor can provide guidance tailored to your specific situation.

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