A is doing business, who has 10 systems for his office.
He purchased Anti-virus Software Packs (3 User Pack 3 Nos. & 1 User Pack) for all his systems. Cost comes to approx. Rs.10000/- including VAT. Separate Bill for this purchase.
He purchased Toner Cartridge for his two Laserjet printers. Cost comes to approx. Rs.8000/- including VAT. Separate Bills for these purchases.
He purchased Portable Hard Disk capacity of 1 TB. Cost comes to approx. Rs.6000/- including VAT. Separate Bill for this purchase.
He paid approx. Rs.40000/- (including ST 10.3%) for AMC for his systems and printers at the year end 31.03.10. Separate Bill for this AMC. (TDS has been deducted on this bill).
Query :
1. Whether Purchase of Anti-Virus Software Packs shall be treated as ‘Maintenance – Computer’. If not, what is the appropriate account head and reason for the same.
Ans : …………………..
2. Whether Purchase of Toner Cartridge shall be treated as ‘Maintenance – Computer’. If not, what is the appropriate account head and reason for the same.
Ans : …………………..
3. Whether Purchase of Portable Hard Disk capacity of 1 TB shall be treated as ‘Maintenance – Computer’. If not, what is the appropriate account head and reason for the same.
Ans : …………………..
4. Whether AMC shall be treated as ‘Maintenance – Computer’. If not, what is the appropriate account head and reason for the same.
Ans : …………………..
5. Is there any limit to determine the Account Head on such transactions - I am unable to have clarity. Please clarify.
05 August 2010
1. Computer software. (This is to be amortised over a period of 1 yr). 2. Computer consumables (you can keep debiting DVD/CD/laptop cleaners/catridges/toners to this acccount). 3.Computer external memory devices. (you can debit HDD/Pendrives to this account). Alternatively, you can keep debiting these expenses also to the computer consumables account. 4. Debit AMC paid to a seperate "AMC - prepaid" account which can be amortised over a period of 1 year.(since the AMC tenure will be valid for 1 yr). 5. Just look at the nature of the expense, purpose and determine.
CAclubindia
