Purchase of 'routers' for computers

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arun laxman gaikwad (Querist)

03 July 2014 Dear Sir
We have purchased Routers for computers amounting to Rs.60,000/=. Request to confirm account head for this ?

Shall we debit this to 'Office Equipment a/c' and capitalise? or

shall we debit this to expenses ?

Pl advice urgently.
Thanks
Arun Gaikwad

Guest

Guest (Expert)

03 July 2014 i think computer expenses is better option rather than capitalising it...

how many routers were there in 60000

arun laxman gaikwad

arun laxman gaikwad (Querist)

03 July 2014 there are only 2 routers in Rs.60000

Guest

Guest (Expert)

03 July 2014 ok... so if u want u can capitalise them also if they can be a separate asset

usually we donnt capitalize routers in our books dear

Rupesh Jain

Rupesh Jain (Expert)

03 July 2014 generally it is expense off in the same year.
otherwise you can capitalized under the computer head and deprecate under income tax @ 60% yearly.

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