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 ?
momin saifi (CA Final Student) (169 Points)
20 February 2013Please 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 ?
Dhawal Mohnot
(Practicing)
(449 Points)
Replied 21 February 2013
How many plastic bins were purchased with rs.45,000?
momin saifi
(CA Final Student)
(169 Points)
Replied 21 February 2013
we bought 80bins which are being used in production.
Dhawal Mohnot
(Practicing)
(449 Points)
Replied 21 February 2013
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.
momin saifi
(CA Final Student)
(169 Points)
Replied 21 February 2013
You mean bins are treated each for this purpose not in a combinedly bins.
Dhawal Mohnot
(Practicing)
(449 Points)
Replied 21 February 2013
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.
momin saifi
(CA Final Student)
(169 Points)
Replied 21 February 2013
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.
Dhawal Mohnot
(Practicing)
(449 Points)
Replied 21 February 2013
The same treatment can be adopted for stools as well.
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