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Depreciation on computer monitor

Manoj Prasad (Accountant) (311 Points)

01 September 2016

for a Company, we have purchased a Monitor of Rs.4500/- I want to know should I capitalize it or I should w/off as its below 5000/-

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6 Replies

AWANEESH (self employed) (30 Points)
Replied 01 September 2016

Both can be possible. It depends on you what you want. i would advice to charge it as revenue expenditure since not an material figure.

(Guest)

It depends- whether u have a computer asset a/c created ? then u can add to that account...If u are liable to tax audit..an auditor wud want u to disallow this expense and take depreciation...but as the amount is too small u could possibly debit expense account

anonymous (student) (750 Points)
Replied 01 September 2016

write off.. since it does not increse efficiency of the computer on a whole

pankaj (Sr. Accountant) (72 Points)
Replied 01 September 2016

It all about materiality of the product if this computer cost affect the business then it should be capitalize if it does not then it should not be capitalize .

simran kaur (student) (51 Points)
Replied 01 September 2016

Depreciation is advisable.

Ramarao Gullipalli (Dy.Manager-Finance & Accounts) (99 Points)
Replied 02 September 2016

best advise is capitalize and depreciate because if you charge off to revenue..it could not traceout further periods. if you capitalise it would be easy to track and asset monitoring and asset utilization analysis.