Hye Guys, first of all “HAPPY NEW YEAR” to all readers ……..
I want to ask two questions here ……..
1) What entry to be passed for repairing faulty memory slot in mobile?
Shall I debit ‘Mobile A/c.’ or shall I transfer it to ‘Repairs & Maintenance A/c.’? When we debit the asset account for repairs expenses, it means that utility of an asset has been increased and when it doesn’t mean that, we debit it to the P&L A/c. I want to ask that how we can calculate utility in respect of mobile? If it is in terms of satisfaction / enjoyment, yes, it has been increased because now I can enjoy songs & music which I couldn’t due to faulty memory slot. If it is not in those terms, then I guess, utility has not increased. Kindly tell me the right entry.
2) What entry to be passed for installing software on Computer?
I guess, softwares are always installed on computer to increase its utility. In this manner, I will debit the ‘Computer A/c.’ Am I right?
CAclubindia
