Accounting Entry
This query is : Resolved
19 May 2010
What is the accounting entry for the purchase of USB Modem (Data Card)of RS.2400.00
DEEPIKA GOEL
(Expert)
19 May 2010
The nature and life of USB Modem is long and accordingly it should be capitalised. You can open a new ledger with USB modem which should be fall in computers(i.e. Fixed Assets).
As the amount of USB modem is too low i.e. Rs. 2400, while depreciating it according to companies act 1956, you have to depreciate the whole amount of Rs. 2400 in the first year itself.
But in other organisation other than companies, you can depreciate it all over its life. Generally, in most of cases, the organisation dont capitalise it as amount is low.
As the amount of USB modem is too low i.e. Rs. 2400, while depreciating it according to companies act 1956, you have to depreciate the whole amount of Rs. 2400 in the first year itself.
But in other organisation other than companies, you can depreciate it all over its life. Generally, in most of cases, the organisation dont capitalise it as amount is low.
20 May 2010
Expense it out....Its a nominal amount....Dont capitalise it.....
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