18 January 2008
I have purchased a watchdog for the safety of my property. So, what should be the accounting treatment? Should it be treated as Fixed Asset or Live Stock or deffered revenue expenditure? Please give the reason too. Also, the treatment of charging it to Profit & Loss A/c. Please reply as early as possible on sabir_bavani786@yahoo.co.in Thank You.
19 January 2008
Dear Sabir, Treatment of purchasing a watchdog depends on your nature of busness. In general it is like charges for caretaking the property. So you can charge it to profit & loss account. Otherwise treat it like your personal expenses.
19 January 2008
sir, If u have purchased a wathdog for protecting your personal belongings or of house properties - u are not going to get any allowance for its maintenance. But if it is used for protecting business properties , the expenses are almost comparable to salary to Watchmen - so u can claim all expenses in relation to its maintenance. All other claims available to animals used in business would be readily applicable. Better head of account will be 'Livestock'
CAclubindia
