A company had purchased a seagate harddisk worth Rs. 13500. Whether it's treated as a new asset purchased or repair and maintanence? Though company passed entry
stationary a/c dr
To Bank A/c
A company had purchased a seagate harddisk worth Rs. 13500. Whether it's treated as a new asset purchased or repair and maintanence? Though company passed entry
stationary a/c dr
To Bank A/c
The same is depend up on the comany policy for capitalisation. i.e there may be a policy that expenditure above Rs. 5000/- should be capitalised. again the hard disc can be capitalised or treated as an expenditure (Repair and mentenence) as per the company policy.
| Originally posted by : karan jit singh | ||
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A company had purchased a seagate harddisk worth Rs. 13500. Whether it's treated as a new asset purchased or repair and maintanence? Though company passed entry stationary a/c dr To Bank A/c |
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If there is any improvement, like increase in the capacity of the hard disk, then it will be capitalised and added to the cost of the computer otherwise debit to repairs and maintenance account.
please suggest that entry passed by company is correct or not
???
Computer a/c Dr
To Bank.
The journal entry should be passed as shown below:
Repairs & maintenance (Pl & machinery) A/c
To Bank A/c
Journal Entry
New Assests Purchased or Computer A/c Dr
To Party
Payment
Party A/c Dr.
To Bank/Cash
Whatever be the case, it can not be debited to "STATINARY A/C"
better to capitalise it, for the want of materiality and auditing conseptions (generally accepted) to
Computer A/c
Hence
Computer A/c Dr
if p[revious harddisk is crashed then it will treat as
Repairs & maintaince A/c Dr.
To Cash/Bank A/c
If this is in addition and increases the efficiency of the computer then it should be capitalised and the below entry should be passed-
computer a/c Dr.
To Cash/Bank a/c
itne saare answers dekhkar chakkar aa gaya pata nahi kon sa sahi hai....
regards
If the hard disk purchased for the purpose of increasing the efficiency of ur computer and the computer is used for generating revenue in ur business then entry should be
Computer A/c Dr.
To Bank/party/cash A/c
Otherwise entry should be
Repair and Maintainence A/c Dr.
To Bank/Party/Cash A/c
The entry passed by ur company is totally wrong.
Don't be confused just go with the majority..................![]()
| Originally posted by : santosh sharma | ||
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itne saare answers dekhkar chakkar aa gaya pata nahi kon sa sahi hai.... regards |
|
Today I argued with accountant. He said me that generally we take all purchase of computer related items which generally available in Stationary is treated as Stationary by us. We are doing from last 8 years.
Guys you know I amazed...How ppl follow there last generations without analysing it.
Now I need a proof or AS or any thing which I can make his mouth shut as soon as possible.
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