Block of asset for lpg stove purchased by a company
This query is : Resolved
Amit Kr. Mishra
(Querist)
08 November 2012
A company has purchased one LPG Stove with related fittings for one of the furnished accomodation it has provided to its executive. The Value of the stove with fittings is less than 5000/- (Rs 1420/- only)
According to the Companies Act, any asset whose value is less than 5000/- should be capitalized but depreciated at 100%.
What should be the block of asset for this LPG Stove for the purpose of capitalization. Can it be shown under the Block "Furniture and Fittings" ? Please Help..
According to the Companies Act, any asset whose value is less than 5000/- should be capitalized but depreciated at 100%.
What should be the block of asset for this LPG Stove for the purpose of capitalization. Can it be shown under the Block "Furniture and Fittings" ? Please Help..
CA Pooja Agarwal
(Expert)
08 November 2012
no depreciation can be claimed and it cannot be shown in the books as it cannot be classified as fixed assets because it does not provide any enduring benefit to the business..
it can be claimed as rvenue exp as staff welfare expenses
it can be claimed as rvenue exp as staff welfare expenses
CA. Vikash Dwivedi
(Expert)
13 November 2012
100% Dep means expense it off. No need to retain it inthe book.
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