Accounting treatment of Mobile phones

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Querist : Anonymous

Querist : Anonymous (Querist)

22 July 2010 If a business purchases mobile phones & sim card for use in its business, what is the accounting treatment for that? IS it treated as fixed assets

CA. Anoop Gadia

CA. Anoop Gadia (Expert)

22 July 2010 Mobile are fixed assets and dep. is 15%

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Querist : Anonymous

Querist : Anonymous (Querist)

22 July 2010 How would you treat a sim card in that case? Will it be treated as part of fixed asset?

CA Ravi Sisodia

CA Ravi Sisodia (Expert)

22 July 2010 without sim card mobile is useless therefore sim is also treated as fixed assets.

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Querist : Anonymous

Querist : Anonymous (Querist)

22 July 2010 Thanks for your reply. One more thing if the business changes its sim card in the later years, then what will be the treatment?

Sunil Kr. Sanganeria

Sunil Kr. Sanganeria (Expert)

22 July 2010 Since the value of SIM card is small, you can charge to revenue account

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CA Ravi Sisodia

CA Ravi Sisodia (Expert)

22 July 2010 recharge charges should be treated as revenue expenditure.

Nirpendra Singh

Nirpendra Singh (Expert)

22 July 2010 Treat to both as a Fixed assets & charge depreciation @ 15% p.a. subject to use whether it is more than 180 days or less.

or u can charge sim card to revenue a/c also.

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