Fixed asset and Expense
This query is : Resolved
Mahesh S M
(Querist)
21 August 2024
How can I differentiate between a fixed asset and an expense? What factors should be considered for categorization? If I purchase something under Rs. 10,000 and it has a durability of more than one year, should it be considered a fixed asset?
CA R SEETHARAMAN
(Expert)
24 August 2024
Yes, it should be considered as fixed assets. You can fix a monetary limit say 10,000.
Any assets purchased for value more than Rs 10,000 and useful life more than one year can be considered as fixed assets.
Any assets purchased for value more than Rs 10,000 and useful life more than one year can be considered as fixed assets.
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