Shall we capitalise these items ?

This query is : Resolved

arun laxman gaikwad (Querist)
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25 March 2014 Dear Sir

Shall we capitalise the following as fixed assets ?

1) purchase of new cartridges
2) purchase of computer mouse
3) purchase of motherboard, adapter, hard disc
4) purchase of UPS

Total purchases may be below 50000 to 60000.

Please answer and if yes to which account should this be debited ?

Thanks
Arun

TKKKKKK

TKKKKKK (Expert)
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25 March 2014 They should be capitalized under computer a/c.
It relates to the block-plant and machinery and fetches 60% depreciation.

Prof. Bajaj

Prof. Bajaj (Expert)
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25 March 2014 In my opinion, Cartridges may be classified as expense in P&L as expense and other items be capitalised as fixed assets.

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CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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25 March 2014 1. no, EXP IT
2. no, EXP IT
3. yes only if there is an increase in effiiciency compared to previous performance...as per AS 10...else exp it

4.SAME AS 3...else exp it.

TKKKKKK

TKKKKKK (Expert)
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26 March 2014 cartridge is ok for expense. but computer mouse is part of computer ....