Accounting treatment for tally purchase software
hemanth hemu (18 Points)
25 March 2019
what is the entry & accounting treatment for tally purchase software (license valid for 1yr)???
16 Replies
Chinmayee Khale
(Senior Associate)
(52 Points)
Replied 25 March 2019
Since the usage is not more than 12 months, you need not capitalise it. Directly expense off in expenses.
Software Expenses Dr.
To Vendor
hemanth hemu
(18 Points)
Replied 25 March 2019
thank you...but how can we treat this as expense becoz after 1yr it that to renew & software purchase not for the purpose of sale???
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 25 March 2019
You can account the "Tally Software" under fixed asset.
Jatin
(Accountant)
(3479 Points)
Replied 26 March 2019
Treat expense for purchase of tally software, make following entries
At a time of purchase software if you purchase software after 1st April
Dr. Software Expenses
Dr. Prepaid Expenses (unexpired portion)
Cr. Vendor A/c
Next year
Dr Software expenses
Cr Prepaid expense
At a time of purchase software if you purchase software after 1st April
Dr. Software Expenses
Dr. Prepaid Expenses (unexpired portion)
Cr. Vendor A/c
Next year
Dr Software expenses
Cr Prepaid expense
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 26 March 2019
Dear All...
Why it's to expenditure head..?
Why not under Asset head...?
Why it's to expenditure head..?
Why not under Asset head...?
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 26 March 2019
Dear Hemanth.,
Tally Software is one of Fixed Asset. You can book it under FA with full value. No more restrictions...
Tally Software is one of Fixed Asset. You can book it under FA with full value. No more restrictions...
hemanth hemu
(18 Points)
Replied 26 March 2019
everyone having different opinion... I'm confused wt to do😅😅
Jatin
(Accountant)
(3479 Points)
Replied 26 March 2019
How can treat tally software as fixed assets
licence of intellectual Property Rights (Tally Software) for 1 year not a fixed assets
in my opinion, treat expenses (You need to renew every year)
licence of intellectual Property Rights (Tally Software) for 1 year not a fixed assets
in my opinion, treat expenses (You need to renew every year)
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 26 March 2019
Renewal of TSS will be accountable in to expenditure...
But, Software is under fixed asset...
Check out this point to anywhere...
But, Software is under fixed asset...
Check out this point to anywhere...
Kalyani
(Chartered Accountant)
(181 Points)
Replied 29 March 2019
Agree with RAJA P M sir, treat it as Intangible asset.
Varsha Kushwaha
(counselor)
(22 Points)
Replied 17 August 2019
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SUSHIL PANCHAL
(25 Points)
Replied 16 October 2019
If i purchase tally software on 16-10-2019,
then as per AS-10, it falls in the two accounting period,
it means its treated as fixed asset.
Марьяна Литовченко
(4 Points)
Replied 15 March 2021
| Originally posted by : hemanth hemu | ||
 |
what is the entry & accounting treatment for tally purchase software (license valid for 1yr) personal tax advisor near me |
 |
what is the result?
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