24 August 2013
my assessee use on equipment for manufacturing good life of this equipment is hardly 1 year(equipment replace yearly) my query is how to treat in accounting ? repairs or maintance or current asset?
24 August 2013
you can claim whole amount of depreciation over period of life of machiner i.e. 1yr or 2 yrs in question...BUT keep record to prove that life is 1/2 yrs only...
24 August 2013
it can be charged to repairs and maitanance,, . . however if the purchased equipement was not used on balancesheet date it can be shown as current asset under inventory which can be classified as consumable item
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