9. A Company has acquired 20 plastic Moulded chairs for Rs. 8000/- i.e., Rs 400 per chair. Whether all the chairs may be w.off
in view of the provisions that the asset upto a cost of Rs 5000 may be w.off @ 100%?
9. A Company has acquired 20 plastic Moulded chairs for Rs. 8000/- i.e., Rs 400 per chair. Whether all the chairs may be w.off in view of the provisions that the asset upto a cost of Rs 5000 may be w.off @ 100%?
Ans: Yes.
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As per iAS 16: The cost of an item of plant and equipment comprises:
(a) its purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts and rebates.
(b) any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
(c) the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located, the obligation for which an entity incurs either when the item is acquired or as a consequence of having used the item during a particular period for purposes other than to produce inventories during that period.
Hence First Insurance paid on car may not be capitalised. In case of a business of running car it may be capitalised.
in view of the provisions that the asset upto a cost of Rs 5000 may be w.off @ 100%?
First Insurance on purchase of a new car. Whether to be capitalized?
in view of the provisions that the asset upto a cost of Rs 5000 may be w.off @ 100%?
i am also having some problems in capitalisation and in revenue part...
as per AS 10 if a part of asets is replaced it should be capitalised seperately when that part can be used seperately after the discarding of the main asset...
from this statement I got totally confused ...
that i read from ICAI c.a. final module that if aeroplane engine is replaced than it should be sepeartely capitalised because it can be used seperately after the aeroplane is discarded.
how this is possible....I am not satisfied ....
and from this sentence a lot of cross questions in my mind arisen...
that the tyres of car replaced can be seperately capitalised because it can be used in other cars if the original car is discarded....i think these are funny questions but i am having a very very vast confusion regarding this....
i have also many cross examples ......but i want to know how should I overcome from these confusions related to AS 10...
replies are welcomed...
A software developing company purchased software for developing software to their customers. Whether thes expenditure is revenue or capital. If we treat as Non tangible asset, what will be the deprecaition rate?
PALANIAPPAN
I purchase Tally software of Rs 38500/- for company.
How we treat in Accounts?
1. Capital/ Revenue
2. If Revenue-
i) Accounts head
ii) Deffered revenue Exp.- over is Licence period
3. If Capitalised
i )Dep. rate in Income Tax/ ROC?
ii) Block name (Computer/Office Equipment)
4. Bases for the acounting
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