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DEPRECIATION

Statutory Audit 804 views 2 replies

HELLO 

RESPECTED C.A.AND STUDENTS

 

MY QUE.THAT .....

I AUDITED ONE CO.AUDIT.IN THAT PURCHASE OF HARD DISK WHETHER GO TO F.A.OR SIMPLY EXPS.

B'CAZ MY SIR TELL ME THAT THIS IS EXPS. BUT AS PER MY KNG......

SEC 32 ONCE SPARES ARE CONSIDER AS EMERGENCY SPARES,ASSESSEE CAN SEEK CAPIT....AND DEP....

AND H.D.IT SELF IMPO.B'CAZ WITHOUT THAT COM.CAN'T WORK.........

 

REPLY FAST PLS......

THANKS............

Replies (2)

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


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