Query regarding Appropriate Account Head

This query is : Resolved

Guest

Guest (Querist)

04 August 2010 Dear Experts,

A is doing business, who has 10 systems for his office.

He purchased Anti-virus Software Packs (3 User Pack 3 Nos. & 1 User Pack) for all his systems. Cost comes to approx. Rs.10000/- including VAT. Separate Bill for this purchase.

He purchased Toner Cartridge for his two Laserjet printers. Cost comes to approx. Rs.8000/- including VAT. Separate Bills for these purchases.

He purchased Portable Hard Disk capacity of 1 TB. Cost comes to approx. Rs.6000/- including VAT. Separate Bill for this purchase.

He paid approx. Rs.40000/- (including ST 10.3%) for AMC for his systems and printers at the year end 31.03.10. Separate Bill for this AMC. (TDS has been deducted on this bill).

Query :

1. Whether Purchase of Anti-Virus Software Packs shall be treated as ‘Maintenance – Computer’. If not, what is the appropriate account head and reason for the same.

Ans : …………………..

2. Whether Purchase of Toner Cartridge shall be treated as ‘Maintenance – Computer’. If not, what is the appropriate account head and reason for the same.

Ans : …………………..

3. Whether Purchase of Portable Hard Disk capacity of 1 TB shall be treated as ‘Maintenance – Computer’. If not, what is the appropriate account head and reason for the same.

Ans : …………………..

4. Whether AMC shall be treated as ‘Maintenance – Computer’. If not, what is the appropriate account head and reason for the same.

Ans : …………………..

5. Is there any limit to determine the Account Head on such transactions - I am unable to have clarity. Please clarify.

Ans : …………………..

I shall wait for your views on the above queries.

Thanks in advance for all concerned.

Venkat Rao Marella

Venkat Rao Marella (Expert)
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05 August 2010 1. Computer software. (This is to be amortised over a period of 1 yr).
2. Computer consumables (you can keep debiting DVD/CD/laptop cleaners/catridges/toners to this acccount).
3.Computer external memory devices. (you can debit HDD/Pendrives to this account). Alternatively, you can keep debiting these expenses also to the computer consumables account.
4. Debit AMC paid to a seperate "AMC - prepaid" account which can be amortised over a period of 1 year.(since the AMC tenure will be valid for 1 yr).
5. Just look at the nature of the expense, purpose and determine.

Thanks.

Guest

Guest (Querist)

05 August 2010 Dear Friend,

Thank you so much for your response.

D.KARTHIKEYAN.

Venkat Rao Marella

Venkat Rao Marella (Expert)
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06 August 2010 welcome..!

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