Electrical fittings purchase
This query is : Resolved
Sreejith. M
(Querist)
12 April 2016
Our society given purchase Order for Rs.55000/- for purchase of electrical items such as copper wire, MCB's, aluminium cable etc. only 3 items singly have more than value of Rs.5000/- 3.5x35sq mm aluminium cable-Rs.8883/- 8 way VTPN DB- Rs7311/- 4 way VTPN DB-Rs.5747/- My query is how to account the same as expense or to capitalize any item ?
Our society given purchase Order for Rs.55000/- for purchase of electrical items such as copper wire, MCB's, aluminium cable etc. only 3 items singly have more than value of Rs.5000/- 3.5x35sq mm aluminium cable-Rs.8883/- 8 way VTPN DB- Rs7311/- 4 way VTPN DB-Rs.5747/- My query is how to account the same as expense or to capitalize any item ?
13 April 2016
Hi,
With regard to your query, It is not clear whether the materials are for replacement with the old ones already installed earlier or it is being installed for the first time,
If it is for replacement it can be treated as repairs and maintenance and you can claim it as an expense, or if it is the other way round you could capitalize the same and depreciate over the useful life.
With regard to your query, It is not clear whether the materials are for replacement with the old ones already installed earlier or it is being installed for the first time,
If it is for replacement it can be treated as repairs and maintenance and you can claim it as an expense, or if it is the other way round you could capitalize the same and depreciate over the useful life.
Sreejith. M
(Querist)
18 April 2016
Sir this is not for replacement this is newly created for the installation of 5 split Ac's a separate line for Ac's connecting to main power line. Electrical wires can be capitalized ?
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