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Fixed assets accounting

NITIN GOEL (ACCOUNTANT) (24 Points)

14 January 2016

Can any one help regarding accounting of assets purchased by the company Like.....

1. Assets less Rs. 5000

2. Invertory Battery

3. Transportion cost with assets purchased

treating like Fixed Assets or not accordign to Comapny law and Income TAx Act....

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3 Replies

Vishal (Asst. Manager) (26 Points)
Replied 14 January 2016

Dear,

It is not a assets which cost is less than Rs 5000/-

If Bateries cost is less than Rs 5000/- booked it in expensess

If assets cost is more than Rs 5000/- then you have booked tranportation cost and also Erection & Installation charge add it one time.Full cost booked in Assets

Ajit Hegde (CA - Final) (1367 Points)
Replied 15 January 2016

Assets less than 5000 should be capitalised and full depr should be charged in the same year. If battery is held for re sale or consumption treat it as stock in trade, or else capitalise. Transportation cost to bring the asset to the factory can be capitalised

Ashish Mehta (nothing) (49 Points)
Replied 18 January 2016

When the cost of asset is less than 5000 then capitalise whole amount and provide full depriciation in very first year If the inventory battery is held for resale then treat it like stock in trade and transportation charges to bring asset on right place should be capitalised