CA Sagar Davda (Manager) (46 Points)
27 January 2016
RAHUL
(Student CA Final )
(377 Points)
Replied 27 January 2016
It is an asset and depreciation rate will be 60%
vishnu bhardwaj
(Tax Advocate)
(212 Points)
Replied 27 January 2016
yes this is a improvment of assesst and it include in assessts and depreciation will be charged in assets depreciation percent.
chandra
(student)
(528 Points)
Replied 27 January 2016
If you are buying new harddisk in addition to your harddisk in computer, it is an asset. Capitalise it as Computers.
If you are buying Harddisk as replacement of your existing Harddisk then expense it and charge it to computer maintainance account.
Vishal Goel
(Chartered Accountant)
(1688 Points)
Replied 28 January 2016
harsh
(student)
(125 Points)
Replied 28 January 2016
RAHUL
(Student CA Final )
(377 Points)
Replied 28 January 2016
Even when you are replacing the asset, it should be noted that- if the new hard drive results in increases the standard performance of the computer than the existing one. Whether the technology used in making the new hard-drive is different/ new leading to better performance. If yes, then should be capitalised.
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