PURCHASE OF ANTI VIRUS
This query is : Resolved
12 June 2011
M/S XYZ, a Pvt. Ltd. Co. purchases a Quick Heal Anti-virus of 3 years. Whether to be capitalized (ie. amortized in 3 years) or to be debited to P&L A/c?
CA PARAS BAFNA
(Expert)
12 June 2011
You can debit the expenses to P&L A/c in respect of the software as in the next two years , you may feel difficult to prove this expenditure, in the absence of any explanatory provision of amortization.
Certain revenue expenditure may give enduring benefits, also so please debit it to Expenses head.
You can debit the expenses to P&L A/c in respect of the software as in the next two years , you may feel difficult to prove this expenditure, in the absence of any explanatory provision of amortization.
Certain revenue expenditure may give enduring benefits, also so please debit it to Expenses head.
CA Suresh Jain
(Expert)
12 June 2011
Debit 1/3rd to Expense Account and 2/3rd to "Prepaid Expenses Account" which is to be debited to Expenses in the relevant year
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