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TREATMENT OF CARPET IN OFFICE

ASIF ALI MEMON (8 Points)

05 August 2021

WE HAVE PURCHASED A CARPET OF RS 50,000/ IN OUR OFFICE PLEASE GUIDE THE ACCOUNTS ENTRY EITHER EXPENSE OR ASSET

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6 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 05 August 2021

Whether it is used for business purposes??

ASIF ALI MEMON (8 Points)
Replied 05 August 2021

NO IT IS NIT USED FOR BUSINESS URPOSE

Nidhi (Chief Accountant) (3150 Points)
Replied 05 August 2021

It's expenses, transfer it to p&l account as indirect expenses

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CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 06 August 2021

Then depreciation should not be chay

Rama chary Rachakonda (Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294) (3303 Points)
Replied 06 August 2021

If your new carpet is an improvement rather than a repair, you must treat the expense as a capital expense and depreciate it over time. You're likely already depreciating the value of your property -- depreciating an improvement works roughly the same way. Your carpet has its own depreciation schedule.