Tally as a fixed asset

What was exactly the entry passed by your then accountant on 30th March 2015? I want to know that when he credited ezone account, which account he credited?

Hi Ruchi,

Thanks for the reply.

On 30th March 15

Dr Computer Maintenance

Cr eZone - bill no. ez/xx/14-15

Please note eZone is under Sundry Creditors Computer Maintenance is under Indirect Expenses

Your accountant has considered the purchase of tally software as an expense for the year rather than considering it as a fixed asset. If it was considered as fixed asset then you could have claimed proportional depreciation on it. But by treating it as expense the entire amount has been claimed in a single year. Your ezone account would not be showing any balance in the current year after you have made payment to them. And computer maintenance account would also have been automatically transferred to P&L a/c. 

Now since a year has passed, previous years' books are closed and your income tax return is also filed considering the same in the nature of an expense, I would rather advice you against changing the nature of transaction from expense to fixed asset as it would mean revising the income tax return already filed and making changes to books of accounts already closed. So let the entry be. 

Many of the Tally users wish to use Fixed Asset and Expense ledgers in Purchase related Vouchers. But the list of Ledgers will show only Purchase ledgers. There is a simple and quick solution.
In Purchase voucher screen, press F12 ->Set Allow Expenses/Fixed Assets for Accounting Allocations option to YES. You will see all the Fixed Assets and Expense Ledgers appear in the list.

I agree with CA Ruchi

hi ruchi,     can we treat tally softwaer as a fixed assets ? if yes, than what is the rate of depritiation on it.