24 May 2015
sir ...i want to ask thay when hard disk is purchased then such expense should be capitalized or to be charged to p&l acc.....plss also state the answer to the above when such expense on purchase of hard disk is made due to reason.....(1) original hard disk got damaged (2) new hard disk is purchased to increase the storage capacity
24 May 2015
In view of increase in storage capacity it can be capitalized subject to the following conditions. 1 Old value of the hard disc has to be removed from the asset block(Part of computer). 2. Main computer has remaining useful life or hard disc can be utilized irrespective of the life of computer.
CAclubindia
