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Computer software upgradation

A/c entries 1037 views 6 replies

Vikas Dighe

Tax Consultants

49 Points Joined November 2012

I have a computer software, which is update every year. So, the updatation fees/charges which A/c to be debited. Is it Computer Software[Asset] or Technical Service[Ind. Expenses]. Plz help me. Thanks in advance

Replies (6)

manoj

student

5205 Points Joined February 2009

updation cost will be a revenue expenditure as it is recuring expeneses

Gururaj V Megharaj

IPCC

70 Points Joined February 2011

Technical Service[Ind. Expenses] is to be debited.

Guest

Technical Service[Ind. Expenses] is to be debited because annual upgradation is revenue expenditure because its nature is recuring

Ashwani Narnoli

1843 Points Joined July 2009

agree with above.

Antony Jacob

FINANCIAL ACCOUNTANT

30 Points Joined January 2013

agree with above.

CA CS Himanshu Khandelwal

SAP FICO Consultant

705 Points Joined April 2010

Being updation of the software is a recurring nature so technical service account should be debited & should be charged to revenue account instead of caplitalizing the same....