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Capital accounting and depreciation

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(Querist)
29 May 2020 Dear Sirs
I am a retired chemical engineer and I just started using a bookkeeping software for my business accounting. I have a query.

I purchased a website of my own by paying Rs 5000 to Godaddy.com. Also I paid Rs 20000 for developing the contents of the website. Some of the 5000 Rs will be good for 2 years after which annual renewals and payments will be required to keep my website alive. I am registered with GST also.

1. How should I show this in the accounting books. with regard to each of the payments.
2. How much depreciation is to be taken as per existing rules.

Please guide me. Thanks
R.Muthukrishnan
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
29 May 2020 Capitalise 25,000 as intangible asset and charge it over a period of 2 years as it's valid for 2 years.
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