04-04-2007, 06:15 PM
AOA to All
We have a small type of Private Limited Company. We are involved in business of consultancy. We prepare feasibility and others reports to others organizations and thus they make payment to us against our consultancy charges.
Now a day, we are preparing a feasibility report. For that purpose, we purchase a report of Rs. 40,000/- from another organization to get some information for our feasibility report.
I am a little bit confused about the accounting transaction of the report which we purchased. I am confused whether we shall treat it as expense or we shall charge it to the company asset? Because the amount of the report is Rs. 40,000/- which is sufficient to capitalized. On the other hand, we have purchased it for generating of another report. Please let me know what will be the transaction of this report?
I shall be thankful for positive and an early response.
Regards,
Zia ur Rahman
We have a small type of Private Limited Company. We are involved in business of consultancy. We prepare feasibility and others reports to others organizations and thus they make payment to us against our consultancy charges.
Now a day, we are preparing a feasibility report. For that purpose, we purchase a report of Rs. 40,000/- from another organization to get some information for our feasibility report.
I am a little bit confused about the accounting transaction of the report which we purchased. I am confused whether we shall treat it as expense or we shall charge it to the company asset? Because the amount of the report is Rs. 40,000/- which is sufficient to capitalized. On the other hand, we have purchased it for generating of another report. Please let me know what will be the transaction of this report?
I shall be thankful for positive and an early response.
Regards,
Zia ur Rahman
