Acconting treatment of Plant and Machinary

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Laksminarayan (Querist)
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04 March 2011 Dear Sir/Madam,
Plz, guide me accounting treatment of Machinery used in production for 1 month. machinery costing Rs. 20000.
Machinery lifetime 1 month
whether it is a Fixed asset or current asset?
what is the rate of depreciation chargeable?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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05 March 2011 As per AS-10 Fixed asset is having more than one accounting period. in yout case machine is working for 1 month, then it need to be treated as consumables and directly can be debited in to expense account

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