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is we purchase any software like installation of MS Windows
do we need to capitalize it or post it under head repair &
maintenance A/c?
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Answer Posted / geetha
It need not to be capitalized, it can be shown under
computer maintainence account because Computer is an asset
and soft-ware is used to make effective usage of computer.
| Is This Answer Correct ? | 3 Yes | 4 No |
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Alex’s Trial Balance at 31 December 2015 Dr (BWP) Cr (BWP) Capital 18 240 Bank overdraft 3 000 Fixtures and fittings 14 100 Provision for depreciation-fixtures and fittings 8 800 Inventory 14 200 Trade receivables 12 300 Trade payables 9 900 Revenue 110 000 Purchases 51 000 Discount received 1 800 Wages and salaries 26 000 Sundry expenses 34 000 Discount allowed 620 217 540 ======= 86 420 ======== Required: i Prepare the corrected trial balance at 31 December 2015. (7 marks) ii Show any difference you find as a balance on an appropriate account.
