In our company as per the grade of employees they are entitled for procurement of mobile phones, at first yhey purchase mobile they desired and then they submit the bills and claim the entitled amount (entitled amount is 6000 however they are free to purchase any value mobile we reimburse only 6000)
In the above scenario, now a question arised whether these mobile hand sets are to be capitalised or directly the claimed amount of 6000 is to be charged to P&L A/C ??
If it is to be capitalised then wat value to be taken? mobile handset cost or 6000?
one more thing.. they are used for 4 years, after that they are eligible for new mobile and old mobile need not to be deposited with the company.
pls help out dears...
CAclubindia
