04-12-2011, 03:19 AM
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Farooq.authorities</i>
<br />it will be revenue expenditure coz the the LCD has broken by conduct of the user..
it can not be treated as compulsory payment like TAX, Import Duty etc..
other side of coin is, if the price of new LCD exceeds its previous one the exceed amount will be treated as capital expenditure coz it can be recoverable by resell the Laptop.
Any query must reply.
Regards,
M.Farooq Rehmani.
(CA-inter)
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
salam.
well my point of view is
1 the cost of old LCD should be treated as LOSS (abnormal loss) and should be expensed out in current PLS account..
2 the cost of new LCD adds to the value of the Laptop! isn't it?
so if it adds value to the Laptop, we should capitalized it provided that Laptop is used as Fixed Asset!!
any further discussion will be appreciated.
Regards.
<br />it will be revenue expenditure coz the the LCD has broken by conduct of the user..
it can not be treated as compulsory payment like TAX, Import Duty etc..
other side of coin is, if the price of new LCD exceeds its previous one the exceed amount will be treated as capital expenditure coz it can be recoverable by resell the Laptop.
Any query must reply.
Regards,
M.Farooq Rehmani.
(CA-inter)
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
salam.
well my point of view is
1 the cost of old LCD should be treated as LOSS (abnormal loss) and should be expensed out in current PLS account..
2 the cost of new LCD adds to the value of the Laptop! isn't it?
so if it adds value to the Laptop, we should capitalized it provided that Laptop is used as Fixed Asset!!
any further discussion will be appreciated.
Regards.
