suppose mobile phones are shown as Fixed Assets in a company but afterwards usb cables or charger is purchased then should we capitalise them also ,or we should book book them in p/l ?
Menu
Capitalisation of assets
Replies (4)
They should be treated as revenue items as they are sperate from mobile phone
Book them in P/L as they are revenue items
P&L item
we should capitalize only if such expenditure enhances the revenue generating capacity of that asset.
so treat it as a revenue expense.
so treat it as a revenue expense.
Recent Topic
- ITR-3 Filling issues
- PF withdrawal and tax liability
- Sale of Goods or Services?
- ITR form query
- Credit against paud RCM on rent
- Dividend difference in 26AS, AIS, TIS
- 194JB INCOME
- Filing ITR3 where income under section 44AD with L
- What is superannuation fund
- GST Refund of input services under Inverted Duty S
Related Topics
CAclubindia
