Fixed assets
This query is : Resolved
12 October 2011
Capacitor purchased for factory comes under Plant & Machinery or Electrical Equipments. Please clarrify. Also provide the file containing classifcation of Fixed Assets with examples. Thanks in Advance.
murtuza munim
(Expert)
13 October 2011
Dear Suresh,
For the purpose of answering the same let us break the question into two parts.
1. is the capacitor an asset by itself; if the answer to the same is yes, then it should capitalised under the fixed asset block closely resembling its nature.which in this case seem's to be electrical equipment. On the question as whether the capacitor alone would be an asset or not we can refer to para 8 of the AS 10; Accounting for Fixed Assets, which speaks on identification of fixed assets.
2. If the capacitor is a part of the plant of machinery and is to be used specifically for the same plant purpose, then it has to be capitalised along with the plant and machinery thereof. Reference can be made to para 9 of AS 10 Accounting for Fixed Assets, which speaks of "Components of Cost".
thanks,
murtuza
For the purpose of answering the same let us break the question into two parts.
1. is the capacitor an asset by itself; if the answer to the same is yes, then it should capitalised under the fixed asset block closely resembling its nature.which in this case seem's to be electrical equipment. On the question as whether the capacitor alone would be an asset or not we can refer to para 8 of the AS 10; Accounting for Fixed Assets, which speaks on identification of fixed assets.
2. If the capacitor is a part of the plant of machinery and is to be used specifically for the same plant purpose, then it has to be capitalised along with the plant and machinery thereof. Reference can be made to para 9 of AS 10 Accounting for Fixed Assets, which speaks of "Components of Cost".
thanks,
murtuza
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- MSME disclosure and disallowance
- Issuing of delivery challan by seller of goods
- Taxation of crypto futures in India Fy 2026- 2027
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
