Accounting treatment

Hi,

Whether the purchase of signage boards by the company amounting to Rs 2000/- shall be capatilized?

.............if yes under which head?

............and if no then which expense need to be booked for the above?

Replies (2)

not required to capitalise...

You can account the same in Advertisement and Promotion expenses A/c.

Normaluu any amount <5,000/- need not be capitalised.

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