Accounting entries

lets make it clear .... it is to be shown under  "fixed asset ".

ankit ... man u have mistaken & not checked the balance sheet. Cutlery items are shown under 'Fixed Assets'.

If any of the friends of all those who say that Cutleries and crockeries are to be shown under FIXED ASSETS work in a STAR HOTEL, kindly ask them that under which head they show cutleries. Dont let out bogus statements here out of assumptions. We are looking after the audits of famous hotels and it has been accepted by the income tax also that cutleries are inventories and not assets.

I agree with saranraj. The cutlery utensils like sppons, cups, mugs etc loose shine and colour after say 4-5 months. And thus are of no use any more. Hence they are treated as rev. exp of current year and written off. They can not be capitalised. Only large equipments used in kitchen like cookers, ovens, and electric grinders etc are capitalised. The same is accepted by Income Tax authorities for over years.