Jyothis (Article) (1127 Points)
06 April 2016A Hospital company has receieved a Refigarator as Gift on a contest.
Same is accounted as General consumables (Direct purchase) in Nil value,
Is it necessary to Capitalise such item and charge depreciation,If it is to be capitalised ,how entries should be passed.
CA Suri Kota
(Assistant Manager @ EY)
(955 Points)
Replied 06 April 2016
Any gifts should be recorded at nominal cost i.e 10-100. Yes it has to be capiltaised and shuld be depreciated @ 100% in the same year.
CAclubindia
