Fixed asset limit
p.subrahmanyam (accountant) (101 Points)
03 March 2016
Request How to decide whether an asset (mobile 7,500) is to be treated as fixed asset or revenue expenses
2 Replies
p.subrahmanyam
(accountant)
(101 Points)
Replied 03 March 2016
We are told any asset costing above Rs.5000 is to treate as fixed asset accordingly depreciation is to be caliculated.
Saliq Ansari
(CA_Final Student)
(885 Points)
Replied 04 March 2016
The limit that is set out for Fixed asset below 5000 is to be charged to revenue is a very subjective in manner and could vary from company to company, A Mobile Costing Rs. 7500/- could be capitalized or could be Charged to revenue in the year in which it was purchased depending upon the policy followed by the company.
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