Should purchase of Hard Disk and DVD be capitalised?
- 4 Answers
- 33470 Views
- I also Faced
- E-Mail Answers
Answer Posted / amar sharma
In AS:10 Terms, if the hard disk is part of the computer that is being purchased, then it will form part of the computer that is being capitalized. Whereas, if the hard disk is only a replacement for the previous one that is being discarded for one or the other reason, strictly in terms of AS:10, the previous hard disk needs to be written off and the new one capitalized, if and only if the entity has sufficient reasons to believe that it will enhance the life and working capacity of the computer. (That is, like the purchase of a 1 TB hard disk in replacement for a 160 GB one.)In any other case, it will be treated as a replacement, and needs to be accounted in repairs and maintenance only. a
DVD, however, if not existing in the current computer needs to be capitalized along with the value of the computer and depreciated over the remaining part of the life pf the computer. the same applies for the hard disk also.
| Is This Answer Correct ? | 7 Yes | 3 No |
Post New Answer View All Answers
As an importer of goods through letter of credit, (payment is done through indian bank to foreign back), my question is who is liable to pay with holding tax when the payment is remitted to foreign bank, whether the buyer(importer) or the seller and why?
In the Manufacturing IF QC reject the material. Then where to record rejected material amount.
ram paid to cheque rs 25000/- for comission what is the entry in tally can in this entry tds will deduct then what is the entry in tally and which voucher
what is the new rate of c.s.t in uttraklhand
is goods in transit will be liable for entry tax ?
Mr. A purchased a machinery costing Rs. 1,00,000 on 1st October, 2005. Transportation and installation charges were incurred amounting Rs. 10,000 and Rs. 4,000 respectively. Dismantling charges of the old machine in place of which new machine was purchased amounted Rs. 10,000. Market value of the machine was estimated at Rs. 1,20,000 on 31st March 2006. While finalising the annual accounts, A values the machinery at Rs. 1,20,000 in his books. Which of the following concepts was violated by A? (a) Cost concept (b) Matching concept (c) Realisation concept (d) Periodicity concept.
can any one tell what is the selection proces in cognizant for MBA finance
What is the Technology used to carry out trades? Pls Tell me as early as possible.
what are the limitations of accounting conventions
Sold goods to Gasha 600 by cash
Define overhead in terms of accounting?
Q1©. Gratuity of Rs. 1,20,000 is received in August, 2007 by Mr. M, a legal heir of Mr. R aged 45 years who died on June 28, 2007. Is it taxable?
purchase return liability or asset?should it be included in the balanced sheet?
In South Africa , the current rate for value added tax is ?
What are mis reports and do you prepare it?
