becker
CIBIL
coaching

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Treatment of vehicle used for demo/exihibition


shanavas (CA)     27 March 2018

shanavas
CA 
 34 points

| My Other Post

A Company dealing in vehicle, uses a vehicle for demo or exihibition purpose in their showroom. The vehicle is kept as demo piece fro almost 4 years and they will not use the vehicle for any other purpose than keeping it as demo piece. What should be the correct treatment of such vehicle in books of accounts. Capitalizing as non current assets and claim depreciation?? 

Please clarify and thanks in advance

 

Shanavas

Rohit jain

Rohit jain (Chartered Accountant / Company Secretary)     30 March 2018

Rohit jain
Chartered Accountant / Company Secretary 
 11 likes  221 points

View Profile | My Other Post

since the vehicle is there for 4 years already and there is no use from it in future...if it was earlier capitalized..it's better to write it off

satish

satish (teaching)     30 March 2018

satish
teaching 
 151 likes  2003 points

View Profile | My Other Post

YES IT CAN BE CAPITALISE. SITUATION IS SATISFYING THE DEFINITION OF ASSET UNDER AS-10 PROPERTY, PLANT AND EQUIMENT.


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  


Bajaj Finserv

Related Threads


Loading


Trending Tags