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Regarding head of account

25 May 2016

I want to know purchase of catridge of a printer in a software company comes under which head of account whether office expenses or part of Fixed Assets:Computers.

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9 Replies

Manish Jain (Chartered Accountant) (119 Points)
Replied 25 May 2016

Printer Catridges do not meet the asset recognition criteria. Hence, they are to be considered under Printing & Stationery and charged to P&L A/c

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Harshad Kanekar (Taxation and Accounts Executive) (314 Points)
Replied 25 May 2016

I agree with Manish Jain.

such expenses can be treated as Fixed Asset only if it increases the value of the asset or extends the life of asset or increases the performance of the asset.

Mahesh Dave (Chartered Accountants) (54 Points)
Replied 25 May 2016

Printer Cartriges are replaced like day to day maintenance they are consimables and hence of revenue nature

Nitin Chordiya (CA final Student) (264 Points)
Replied 25 May 2016

Agree with Manish Dave

SJRAMANBABU (Manager Accounts) (23 Points)
Replied 25 May 2016

Consumables or computer maintenance

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konidhana vinod (student) (36 Points)
Replied 26 May 2016

As it is an recurring expense charged to profit and loss a/c

Swapna Pakalapati (10 Points)
Replied 26 May 2016

Thanks.I too thought same way but want to clarify once again.Thanks once again

sudalay dhas (Accounting) (51 Points)
Replied 26 May 2016

Dear madam, It can be debited in Computer Expense ( under Indirect Expense ). When the expense made for extending the life of the asset then only it can be accounted for related assets.