Locker purchased for office strong room for ₹57000/-. Is this to be capitalized
2 Replies
Rama chary Rachakonda
(Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294)
(5899 Points)
Replied 02 February 2021
Yes. certainly It comes under capital expenditure. Capital expenditures (CapEx) are funds used by a company to acquire, upgrade, and maintain physical assets such as property, plants, buildings, technology, or equipment. CapEx is often used to undertake new projects or investments by a company.So lockers also gives income in future to the organisation.
CA Rashmi Gandhi
(Chartered Accountant)
(86323 Points)
Replied 02 February 2021
Yes as it is an assets which will be used for longer than 1 year. Hence same is required to be capitalized
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