Furnishings

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rashmi (Querist)

15 January 2010 A company has taken a flat on rent for its directors. The company has bought the furnishings of the owner. What is the accounting treatment for the same??

Furnishings include fridge, stove, gas bottles, washing machine, television etc.

The company intends to use the flat as guest house in case the director shifts from the flat.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

15 January 2010 Furnishings,since purchased by the company, may be capitalized in respective heads and to be depreciated at the rates prescribed in schedule XIV of the Companies Act,1956. In the fixed assets register also, the place where it is put in may be filled up as 'in rented premises' bearing door number including full address.

Randeep Singh

Randeep Singh (Expert)

17 January 2010 Hi,
Just to add to Mr. Warrier reply that provision of company's Act w'ld also be considered i.e. 100% dep on asset costing less than Rs 5,000/-

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