are loose tools come under current assets ?

Answers were Sorted based on User's Feedback

Answer / h.r. sreepada bhagi

Tools of substantial value & used for more than a year can
be capitalised under "Tools, Jigs & Fixtures". This is
treated as Fixed Asset & depreciation needs to be charged to
P&L A/c. If the cost of tool is very small & long life is
not ensured, it should be charged off to P&L A/.c as
consumable stores or loose tools.

In any case tools do not come under "Current Assets" except
when they are held for sale (It will be shown as Stock in
Trade under Current Assets).

Is This Answer Correct ?    64 Yes 24 No

Answer / shinki

yes, loose tools are always come under current asset

Is This Answer Correct ?    91 Yes 52 No

Answer / mr. accounting expert

Loose Tools comes under the Assets side of the Balance Sheet. If there has to be Depreciation marked for Loose Tools, it has to be entered under Debit side of Profit/Loss a/c. It is a fixed asset, and depreciation is charged on it every year. Therefore, it is NOT a current asset. It is a FIXED ASSET.

Is This Answer Correct ?    25 Yes 2 No

Answer / smrutipriya meher

Loose tools come under current assets.

Is This Answer Correct ?    30 Yes 19 No

Answer / srikanth reddy

No. loose tools are treated as fixed assets

Is This Answer Correct ?    53 Yes 48 No

Answer / ammu

loose does not comes under current assets.

Is This Answer Correct ?    30 Yes 26 No

Answer / naveen raj

Loose tool is not a current asset bcoz they r used for more than one year and depriciation is charged on them 

Is This Answer Correct ?    10 Yes 7 No

Answer / payal malhotra

Loose tools should be taken as under current assets as it comes under inventory

Is This Answer Correct ?    2 Yes 2 No

Answer / himanshu

loose tools comes under fixed assets being generally tools used in production department such as screw driver ,tester etc life is more than 12 months or even number of years hence they are not current asset.therefore loose tools not comes under inventory and comes under fixed assets.

Is This Answer Correct ?    0 Yes 0 No

Answer / shailender

loose tools is current assets

Is This Answer Correct ?    12 Yes 15 No

Post New Answer

More Accounting General Interview Questions

purchase return liability or asset?should it be included in the balanced sheet?

0 Answers  

What is triple entry system.

8 Answers   Siemens,

what is BRS? 12.Why is it used ?

14 Answers  

how to show provident fun in balance sheet

4 Answers   Genpact, WBCS West Bengal Civil Service,

which opening balance should be taken after bank reco.

3 Answers  

How to make deductions of the employees from salary against the loan in AP module oracle R12

0 Answers   ABC,


2 Answers  

What is use of subject history in banking?

0 Answers   Banking,

Original cost = Rs 1,26,000. Salvage value = 6,000. Useful Life = 6 years. Annual depreciation under SLM will be (a) Rs.21,000 (b) Rs.20,000 (c) Rs.15,000 (d) Rs.14,000

3 Answers  

can any one tell me what is the difference between Accounting period & Financial year? Will be waiting for your answer. It's an open source question, any correct answer will be appreciable. Thanks. Regards, Mr. RKO

1 Answers  


1 Answers   National Institute of Food Technology Entrepreneurship and Management NIFTEM,

can u explain the meaning of Work Contract Tax in breif.

1 Answers