WE HAVE PURCHASED A CARPET OF RS 50,000/ IN OUR OFFICE PLEASE GUIDE THE ACCOUNTS ENTRY EITHER EXPENSE OR ASSET
Nidhi (Chief Accountant) 05 August 2021
Rama chary Rachakonda (Master in Accounts & Lawyer email ID:firstname.lastname@example.org voice no:9989324294) 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.
CA Puja Sharma (Chartered Accountant) 06 August 2021
In my opinion record the carpet under the head Furniture and Fixtures and charge Depreciation @ 10%