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Capitalisation of fixed assets ( plant & machinery)

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Querist : Anonymous

Querist : Anonymous (Querist)

25 July 2012 My company Had Opening Block Value of Plant and Machinery Rs.88,22,564 we Purchased a Ups Rs 1750 it is capitalized or Not.
and also suggest me co. Act Provision Regarding Capitalization of F.Assets and Individual Assets.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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25 July 2012 According to Companies Act, if the asset value is less then Rs.5000/- it can be directly expense it off, but also it depends on the company accounting policy on Fixed assets, for control purpose you can capitalise as Fixed assets & take 100% depreciation.and show the nominal value of UPS in the books. it will give the control on the asset in books

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Querist : Anonymous

Querist : Anonymous (Querist)

04 August 2012 thank Ramesh Sir

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