Interested to Buy Any Domain ? << Click Here >> for more details...
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?
- 4 Answers
- 9780 Views
- I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / h.r. sreepada bhagi
Any software purchased needs to be capitalized if it can be
identified as a separate asset. In case it is purchased
along with the computer & the value is inseparable, it can
be added to the cost of the computer, but if it's purchased
subsequently, it needs to be accounted as a separate asset.
However, if it's going to be installed on a particular
computer system, it can be added to the value of that
computer also (Software will become an integral part of that
system).
However, if the value of each software is not exceeding
Rs.5000/-, 100% depreciation can be claimed in the year of
purchase & put to use.
| Is This Answer Correct ? | 6 Yes | 1 No |
Answer / dipinder kaur
cost of new software(if forming indispensible part of asset) if bought along with computer should added to computer's cost n thus both to be capitalized.If bought separately then also it should be capitalized.BUT if it is a routine activity to renew the software every year,then it should be debited to p&l account.AND in case of companies,software bought below rs. 5,000 can be 100% depreciated after being capitalized.
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / 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 |
Answer / b.balaramakrishna
We need not to capitalize, we can simply book under
printing & stationery or computer maintenance
| Is This Answer Correct ? | 2 Yes | 5 No |
What are all the MIS reports you prepare in your company for the management
What is Mixed Invoice
any example should cover all three types of accounts in one entry
Explain me what is important to effective market analysis?
Purchases book records: (a) All cash purchases. (b) All credit purchases. (c) Credit purchases of goods in trade. (d) None of the above.
As you know executive accounting?
How we will dabit profit & Loss a/c in tally because profit & Loss a/c is tally generated a/c. we have to make provision for tax.
I purchased a machine and finance it by bank with the amount 1900000 and bank apply the finance charge 440000 for 3 years finance how to pass this entry still machine value is 2200000 is finance charge is interest (indirect exp.) pls help me.
how will you adjust voluntary seperation payment in cash flow statement
A factory uses annually 24,000 units of a raw material which costs Rs. 1.25 per unit. Placing each order costs Rs. 25 and carrying cost is 6% per year of the average inventory. (a) Find the economic order quantity and the total inventory cost including the cost of material.
Whether we add or not the Insurance policy premium of vehicle in asset value?
What is MIS report and Expalain with Explamples by using MIS format
Audit 
