03-16-2011, 02:27 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 human</i>
<br />A laptop costs Rs 50,000. After few months of its purchase its LCD gets damaged and the replacement of LCD costs Rs 20,000.
Should we expense out or capitalize the new LCD?
If we capiatalize what should we do with the cost of old LCD as the laptop has been capitalized as a whole previously.
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Dear human
i think it is to be capitalised... the New LCD definitely have added to the value of laptop... e.g., if after damage of LCD, value of laptop will have, suppose Rs. 25000... after additions (New LCD), its value will certainly increase... its common!
<br />A laptop costs Rs 50,000. After few months of its purchase its LCD gets damaged and the replacement of LCD costs Rs 20,000.
Should we expense out or capitalize the new LCD?
If we capiatalize what should we do with the cost of old LCD as the laptop has been capitalized as a whole previously.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Dear human
i think it is to be capitalised... the New LCD definitely have added to the value of laptop... e.g., if after damage of LCD, value of laptop will have, suppose Rs. 25000... after additions (New LCD), its value will certainly increase... its common!