Should we consider Spark Mate Magic clening Mop under Office Equipment ???
CA Suryakant Dubey (CA ) (931 Points)
12 December 2012Should we consider Spark Mate Magic clening Mop under Office Equipment ???
raunak
(CA)
(369 Points)
Replied 12 December 2012
If its value is less than 5000..(which i suppose it is)....book it under Misc and general expenses...no need to show it as an asset.
CA Suryakant Dubey
(CA )
(931 Points)
Replied 12 December 2012
Can we consider it under consumables.....its value is Rs.1999
Yogesh Shah
(Managing Corporate Finance)
(1051 Points)
Replied 12 December 2012
Hi Dude,
For including any expenditure under 'Assets', such expenditure must satisfy conditions of being 'Capital Expenditure'. Furthermore, it should result in increase in profit earning capacity.
In none of the way I found any reason to include above under Assets. Hence, right way is to show it under P&L.
raunak
(CA)
(369 Points)
Replied 12 December 2012
No..its not an input........book it under misc and general expenses.
Yogesh Shah
(Managing Corporate Finance)
(1051 Points)
Replied 12 December 2012
| Originally posted by : Suryakant Dubey | ||
 |
Can we consider it under consumables.....its value is Rs.1999 |
 |
raunak
(CA)
(369 Points)
Replied 12 December 2012
Anything that gets used up by your processes is a consumable. For example, a magazine printer would have paper and ink as consumables....so its not right to book it under consumables.
CA Suryakant Dubey
(CA )
(931 Points)
Replied 12 December 2012
i agree with all...but i need a reference from which i can convince my client for such consideration....
raunak
(CA)
(369 Points)
Replied 12 December 2012
Refernce??...juss tell him you can only show fixed assets as office equipments..and this mop doesnt satisfy any condition of fixed asset.....further its value < 5000..so no need of depreciation too....obv u wont get any case law on these petty matters.
Jayalakshmi Anshuman
(Chartered Accountant)
(69 Points)
Replied 12 December 2012
Pulkesh Mehta
(Chartered Accountant)
(243 Points)
Replied 12 December 2012
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
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