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shriniwas (Accountant) (124 Points)

10 March 2011

Hi,

We are an IT company. We have purchase laptop battery for amount of Rs. 4500/-. It will be consider in fixed assets or computer exp.

Pls. confirm.

Thanks

Shriniwas Tiwari

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4 Replies

V P Narasimhan (Accounts Manager) (791 Points)
Replied 10 March 2011

It depends. Normally any amount less than Rs:5,000 will not be treated as assets.We can account as "computer consumable" expenses under Indirect expenses treat as part of printer tonner refilling etc.,

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sukhpreet (study) (67 Points)
Replied 10 March 2011

it is consider as computer expense.......(it is a revenue expenditure bcoz
1st.. it is not increases ur efficency
2nd.. u cant show it is show as a asset in the balance)

if i m wrrong plz reply me ..

1 Like

Devendra (Chartered Accountant) (4775 Points)
Replied 10 March 2011

Debit it to the Repairs and Maintainence Account instead of Capitalisiing it. Usually assets having value less than Rs. 5000 are written off.

Regards,

Devendra K

DEEPAK JANGRA (Articleship under Naresh Jai & Associates) (95 Points)
Replied 10 March 2011

Dear sukhpreet although it is a revenue expense but ur reason is not correct.the laptop battery definitely increases laptop's working efficiency but it not good be shown as capital expence because:

1. this expense is very petty

2. this expense is not done at the time of purchase of laptop

3. such type of expense is of reoccuring nature