DEPRECIATION

HEllo,

pls und dat a transaction has two different treatemnts, See purchase of Harddisks(Indiviual Cost >5000) can be capitalised in the Books as per Co's Act under COmputers.

However da treatment for IT depn purpose is right wat u said, Depn is claimed

once the pc is purchased we have capitalised all the amount icluding amount of hard disk,so if some time lated it became damaged and we purchased another one than how can we capitalised both hard disk's amount (previous and newer). assuming that we have not deducted the damaged disk's amount from the capitalised amount.

if the hard disk's amount is large we can capitalised it.So the conclusion is that there exists a thin line between capitalisation and espenditure matter in this case