hi,
we are procuring hand wooden pallets, ms pallets ,plastic bins ,crates,bobbins , ring frame etc snce ours is textile industry
the value of each item is less than 5k but we buy in thousands, hecne the value will be in range of 60 to 80 lacs per year
should we capitalise this or can it be charged off , pls advise
if yes what would be the best or appropriate head of a/c
tks/badrinath
Since yours is a textile industry Purchase of all these things which are as such inputs for your company should be transferred in Purchases head & stock details of it should be maintained & any stock which remains at the close of the year should be shown as closing stock.
Dear sir,
In previous year If I wrongly debited Captial expenditure to Profit & Loss account then how to rectifty this entry.
CAclubindia
