Respected sir,
In our organization we bought one new billing software cost of Rs.22000/- shall we treat this expenses as a assets? or how to enter in tally??
Please clarify this issue sir
Thanking you
If the amount you paid is for one year license then you need to expense it. You capitalise only when asset has value for more than 1 year.
For example, Tally comes with one year license and it works thereafter but you need to upgrade license for new releases.
So, you need to consider duration of license and accordingly treat this expenditure.
For example, if license is more than one year than capitalise otherwise treat it as a revenue expenditure.
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