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When a company buys a mobile phone for Rs 1 lakh, its accounting treatment depends on its intended use. If it's for business operations, it's typically classified as a fixed asset. However, if the company's core business involves mobile trading, it would be recorded under purchases. For staff use, it can be a fixed asset or even considered a staff welfare expense, potentially included as a perk in their salary.

ABHISHEK KUMAR

ABHISHEK KUMAR (Querist)

20 May 2021 Our company had purchased a mobile worth Rs 1 lakh. Under which head it will be shown..And what will be the un the books

CMA Poornima Madhava

CMA Poornima Madhava (Expert)

20 May 2021 If used for the purpose of business, it would be a fixed asset

CA Satish Badve

CA Satish Badve (Expert)

20 May 2021 If yours is mobile trading company then purchase A/c . If for the use of staff for office use the fixed assets account . if for personal use also then staff welfare account, also to see to include in their salary as perks value.

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