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Should purchase of Hard Disk and DVD be capitalised?
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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 |
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