Accounting treatment of living plants purchased

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Plants purchased for office decoration worth Rs 3-4 lakh are not considered fixed assets as they do not provide long-term economic benefit. Hence, they should be treated as revenue expenditure and charged directly to Profit and Loss account, not capitalised.

Manisha Yadav

Manisha Yadav (Querist)
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27 June 2019 Please suggest for the below mentioned query.
Plants worth Rs 3-4 Lac purchased for premises for decoration purpose only.
In Fixed Assets whether these will be shown under Furniture and fixture/any other head.
Depreciation applicability?
Please answer.

Kamal Kant Mittal

Kamal Kant Mittal (Expert)
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11 July 2019 Hello,

This expense can not be capitalised as there are no future economic benefits from plants purchased for decoration purpose.
Hence this expense should be debited to profit and loss account directly.

Regards
CA Kamal Kant

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