Entry for adaptor purchased for an asset

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5 Points Posted on 05 April 2021
Hello,

My client purchased an adaptor of Rs 1000 for a bio metric device(asset)....so can I show this adaptor under assets??
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On 05 April 2021 at 13:09 Report
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Quick Summary
This discussion clarifies whether an adaptor purchased for a biometric device should be recorded as an asset. The consensus is that if the adaptor is for initial use, it can be capitalised as part of the device's cost. However, if it's a replacement part, it should be expensed under repairs and maintenance.

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2742 Points Posted on 05 April 2021
Yes you can show it as an asset
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On 05 April 2021 at 13:17
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Chartered Accountant
24588 Points Posted on 05 April 2021
Yes you can show it under assets
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On 05 April 2021 at 14:25
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CMA
13117 Points Posted on 05 April 2021
1) If such adapter is purchased for the initial use, you may capitalize the same (as part of cost of the device) 2) In such adapter is a replacement one, then debit the same to repairs & maintenance.
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On 05 April 2021 at 15:31
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5 Points Posted on 05 April 2021
Understood !!..... thanks everyone
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On 05 April 2021 at 15:50

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