Fixed assets-purchase of items for staff welfare

Jyothis (Article) (1127 Points)

05 March 2016  

A company providing software services has purchase the following during the year

What all items are  to be capitalised & others as expenses

1)- Purchase Monitor-Rs.8500/-,Mouse-Rs.500/- &SMPS Rs.1000/--(Single invoice Rs.10,000)

Item was purchased as replacement of existing working PC - So can it be accounted as Expense Or Mointor to be capitalised & other as expense in head "Computer consumables & Services".

2) Table tennis court was purchased & Installed in office premises for Staffs Costing Rs.26,000/-

Can it be accounted as "Staff welfare expense" Or is it mandatory capitalise items purchased for staff's welfare.