Prepaid Expenses Accounting for Tools

Provisioning in accounts is a general phenomenon

You need to provide for expenses as per prudent accounting concept and " ACCRUAL CONCEPT".

Thanks Sabyasachi Bhai. We procured tools for multiple machines for Rs 100000 on Aug. If we account this value in Aug and our PL will impact. So, shall we account this amount under prepaid and monthly will be accounted 10K for 12 months. For prepaid insurance particular period is mentioned in the policy. But, what about Tools for machines? We account 12 months or need to close within this FY?

Tools are basically a capital item.
But individually an item should be more than 1% of the revenue of the company. Then it should be capitalized.
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Actually it includes tools and consumables for multiple machines. So, we can't account this costs for particular machines

Consumables are not capital item.