Interested to Buy Any Domain ? << Click Here >> for more details...
Should purchase of Hard Disk and DVD be capitalised?
- 4 Answers
- 35911 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
What is tally and its features?
What is the double entry system explain its rules with examples?
PLZZZZZZZZZZZZ HELP ME FOR THE PREPARATION OF TEST JR.EXECUTIVE (ADMIN)IN ATM IAM APPEARED 1ST TIME IN THIS TEST MY TEST CENTER IS RAWALPINDI MY CONTACT NO IS 03338907330
shyam consigned 200000 unit @ rs 5/-each to mr ram and paid freight and insurance amounting to rs 100000.ram spent further following amount: 1) insurance rs 5000 2) godown rent rs 4000 3) clearing rs 6000 2000 unit were damages during transits due to heavy rains. Ram sold 100000 unit @rs 10 per unit . ram realisec solvage value of damage unit rs .2000 ram is get 5% commission on sale determine the abnormal loss?
What is project implementation?
one bank account transaction example ebanking raj medical 500000 dr. second bank account ebanking raj medical 500000 cr what is the entry in tally erp can it is contra contry or not please explain
I renders interior Services, consider one project cost Rs.500000/- Scenario 1 - Material purchased on my Firm Name Material - 300000 -300000 On party behalf Labour - 200000 -150000 My expenses for Labour Contracts Profit - 50000 My Profit Scenario 2 - Material purchased by client Labour - 200000 -150000 My expenses for Labour Contracts Profit - 50000 My Profit In both Profit is same Rs. 50000/-. which is beneficial for me in terms of turnover or tax matters. and if I have to raise a bill to party as per both scenario, how it will affect bill and tax, where will I suffer loss?
which type of questions did HR Manager ask and what are the answers
what is "goodwill" reserve and surplus and reserve with example
Under Accrual Accounting, How Are Worker Comp Premiums Handled?
Give ONE reason for Balance Sheet to be out of balance
what is the deference between depreciation explanation
Can you name any other accounting application?
describe any accounting process that you have developed or revised
service tax calculated on agreement value or market value whichver is higher for builders?
