12 June 2011
M/S XYZ, a Pvt. Ltd. Co. purchases a Quick Heal Anti-virus of 3 years. Whether to be capitalized (ie. amortized in 3 years) or to be debited to P&L A/c?
You can debit the expenses to P&L A/c in respect of the software as in the next two years , you may feel difficult to prove this expenditure, in the absence of any explanatory provision of amortization. Certain revenue expenditure may give enduring benefits, also so please debit it to Expenses head.
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