Asset valuing less than 5000

This query is : Resolved

khyati (Querist)
Follow

06 March 2014 if a mobile is purchased of rs.1500 and is recorded as expense by co. Is this treatement correct or it must be recorded as f.a.

Guest

Guest (Expert)

06 March 2014 As per accounting standards it should be capitalized..but in general practice we normally booked as a expense these small expense..and ya now there is nothing like limit of 5000 u mentioned.So all capital expense should be capitalized..

Sandeep Dharar

Sandeep Dharar (Expert)
Follow

06 March 2014 There is no limit if Rs. 5000/-. But it depends on the nature of transaction either. If the mobile is purchased 4 staffs it belongs 2 the company & not to staffs, suppose if the staff left the work then he will not take the cell phone with him. So i suggest to Capitalized it & do not record it as expense.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

ATUL MAKWANA

seshachary

Rameshkumar Jain

suresh kotte

Mitesh

Subscribe Now

Asset valuing less than 5000

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

GST CONSULTANT

GST CONSULTANCY

Manager- Finance and Compliance

Article Assistant

CA Final

Accountant