Vikas Aggarwal (CA ) (207 Points)
21 June 2012company purchases every year 50 silver coins for diwali puja,
Question is wheather is should be shown as Fixed assets under the balance sheet ,or just write off as expenses
and also comments wheather this are depreciable assets or not ,
Give reference to any case laws if any
Looking forward your valuable suggestions
CA Ganesh Agarwala
(Audit Senior Manager)
(239 Points)
Replied 21 June 2012
dear vikash,
it will be treated as investments in books of accounts of the caompany if it is not engaged in the activity of jewelllary and as you know no depereciation on long term investment untill and unless it is permanent in nature. go through AS 13.
cheers
ganesh agarwala
CAclubindia
