Booking of payments for purchase of software
This query is : Resolved
PURUSOTTAM PANDA
(Querist)
09 November 2024
Sir,
Payments made for purchase or use of softwares like Tally.
Should the said payments be booked under "Royalty" or "Repairs and Maintenance"?
Payments made for purchase or use of softwares like Tally.
Should the said payments be booked under "Royalty" or "Repairs and Maintenance"?
Dhirajlal Rambhia
(Expert)
09 November 2024
Since accounting software like Tally is a long-term asset and provides benefits over a period of time (typically more than a year), it is generally classified as an intangible asset. You can book the purchase under "Intangible Assets" or "Software" in the balance sheet.
Journal entry example:
Debit: Intangible Assets (Software)
Credit: Bank
Journal entry example:
Debit: Intangible Assets (Software)
Credit: Bank
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