if we pay a amount for software purchase for our company at one time. what should be the account head and is it an fixed assets? what should i pass the journal for this? need to know my all account savvy.
7 Replies
Tribhuvan Aditya Singh
(Student as well as Self-employed)
(3710 Points)
Replied 27 May 2014
u can use "computer software" as account head. yes, it is an intagible fixed asset on which dep. @ 25% will be charged.
Debabrata Saha
(student of taxation)
(133 Points)
Replied 27 May 2014
thanks buddy. is it also able to take 'software and hardware'?
Tribhuvan Aditya Singh
(Student as well as Self-employed)
(3710 Points)
Replied 27 May 2014
journal entry will be "computer software a/c debit to cash/bank a/c"
Tribhuvan Aditya Singh
(Student as well as Self-employed)
(3710 Points)
Replied 27 May 2014
u cannot use the word hardware because computer hardware are charged to dwp. @ 60% and hence diff. block of assets.
Debabrata Saha
(student of taxation)
(133 Points)
Replied 28 May 2014
thanks a lot dude. will you give me a concept about intagible fixed asset?
Tribhuvan Aditya Singh
(Student as well as Self-employed)
(3710 Points)
Replied 28 May 2014
in simple words, all those fixed assets which do not physically exist are known as intangible assets.
Debabrata Saha
(student of taxation)
(133 Points)
Replied 28 May 2014
simply you are rock buddy.....
Recent Topics
- INCOME TAX AY 25-26
- Experienced CA firm for accounting & auditing
- Regarding Perquisite Tax on ESOP - Unlisted Compan
- Casual Taxable Person under GST
- Extended Date of GSTR-1 for the month of July 2020
- NRO Interest - Taxed at source and in Foreign Coun
- Clarity needed on effective date
- Income Tax Refund Deadline Shortened to Five Years
- Rectification Applications for Past GST Demands
- GST Invoices Series
Related Threads
CAclubindia
