Please advise ...
We are a pvt Co. and purchased Plastic Bins for production use with cost of Rs 45000, .... please tell me in which head i group them ..
.Fixed Assets or any other account ....if FA .then under which block ?
Please advise ...
We are a pvt Co. and purchased Plastic Bins for production use with cost of Rs 45000, .... please tell me in which head i group them ..
.Fixed Assets or any other account ....if FA .then under which block ?
How many plastic bins were purchased with rs.45,000?
we bought 80bins which are being used in production.
Since the value of each bin is less than Rs.5,000/-(Depending on the company policy) The same can be expensed in the p&l under the head consumables.
You mean bins are treated each for this purpose not in a combinedly bins.
In my view for capitalisation purpose the same can be first capitalised and written off completely. because most of the companies follow the policy of writing off less than Rs.5,000 asset. So either capitalise and write off or expense it under consumables.
You can wait for other views as well.
Dear Mr. Dhawal,
Thanks for ur reply , further could u tell me that if we buy some plastic stools at the cost of rs 3000 , 20 pcs ....then under which head we group them ....
These splastic stools are also used for labour in production departments.
The same treatment can be adopted for stools as well.
CAclubindia
