Should purchase of Hard Disk and DVD be capitalised?
- 4 Answers
- 33618 Views
- I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / madhu
yes, you can capitalised at the time of purchase of the
computer means new computer and new hard disk and extra
added dved.
incase of old computer you should be posted in to repairs
and maintenance.
need to check cost of computer and cost of harddisk in some
exceptional cases
| Is This Answer Correct ? | 25 Yes | 0 No |
Answer / 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 |
Answer / rajesh kotrike
The purchase of HDD is to be capitalised as per me, because
1. its value is morethan 10k,
2. with this the current systems capability increases,
3. its life is more than one year
let me know if am wrong.
| Is This Answer Correct ? | 2 Yes | 6 No |
The 'going concern concept' is the underlying basis for: 1.stating fixed assets at their historical cost 2.disclosing the market value of securities 3.disclosing the sales and other operating information in the income statement 4.none of the above
1 Answers Infosys, Satyam, Symbiosis,
professional tax payment for april 2017 paid from ranbeers credit card what are the expesses booking entry in tally
Tell me do you possess any knowledge about accounting standards?
which voucher is created when cash is withdrawn from bank for office use?
Why Capital IQ?
What is the important of computerized accounting to manual?
What is the actual meaning of Ledger Account?
How much mathematics knowledge is necessary or required in accounting?
When tds is deducted from the payments to suppliers, how the Entry will appear in books of accounts in tally.
What is "deposit in transit"?
1. how to pass TDS entry in tally 2. how to pass service tax entry in tally 3. how to pass depreciation entry in tally 4. what is percentage in TDS and service tax
journal entry for prepaid insurance and salary outstanding
Audit 
