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Fixed assets recognition
Is web cam purchase be form part of fixed assets??
web cam cost Rs.3900/-
Replies (5)
As per provision below Rs. 5,000 is to be expense out but web cam can be used for more than 1 years so we can either considered as fixed asset also or we can expenses out.
considering the materiality, 100% depreciation can be charged in the same year.
The amount is not so material as far as Fixed assets recognition is concerned. It is better to write off the entire expense in the current year.
Webcam is used for more than 1 year so it can be considered as fixed assets. At the same time amount of it is less tthan 5000 so it can be expensed out. It depends on nature of your business or turnover that whether it is to capitalized or charge as revenue exp
It should be chared to revenue exp. in materiality concept & its a part of Personal Computer & it will not identify during physical verification after some year. Or It all about Company Policy.
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