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Fixed assets accounting

Others 500 views 3 replies

NITIN GOEL

ACCOUNTANT

24 Points Joined July 2014

Can any one help regarding accounting of assets purchased by the company Like.....

1. Assets less Rs. 5000

2. Invertory Battery

3. Transportion cost with assets purchased

treating like Fixed Assets or not accordign to Comapny law and Income TAx Act....

Replies (3)

Vishal

Asst. Manager

26 Points Joined December 2015

Dear,

It is not a assets which cost is less than Rs 5000/-

If Bateries cost is less than Rs 5000/- booked it in expensess

If assets cost is more than Rs 5000/- then you have booked tranportation cost and also Erection & Installation charge add it one time.Full cost booked in Assets

Ajit Hegde

CA - Final

1367 Points Joined September 2009

Assets less than 5000 should be capitalised and full depr should be charged in the same year. If battery is held for re sale or consumption treat it as stock in trade, or else capitalise. Transportation cost to bring the asset to the factory can be capitalised

Ashish Mehta

nothing

49 Points Joined November 2014

When the cost of asset is less than 5000 then capitalise whole amount and provide full depriciation in very first year If the inventory battery is held for resale then treat it like stock in trade and transportation charges to bring asset on right place should be capitalised