Dear Friends
when we purchase software, is it a fixed asset or intangible asset?
what is intangible asset - something we cant see touch?
we see software working - shouldnt it be a fixed asset.
if it is a fixed asset how will we calcualte depreciation on it.
some softwares have licenses like for 1 or 2 years after which we need to renew it.
please advise after taking above into account.
suppose a company buys a SAP software for Rs. 50 lakhs on 10th April.
what will be the entries with depreciation.
thanks
shivani
CAclubindia
