Is hardware cost accrued over the period of the project?



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Thanks a lot sir for clearing my doubt I would also like to ask you that is hardware cost accrued over the period of the project???
does hardware cost applicable for depreciation?

What exactly capitalized means as you mentioned in my previous question's answer that hardware cost are capitalized,so what does capitalized means???

1 Answer(s)


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Yes hardware cost is applicable for depreciation.
Assume a computer costs Rs.1 lakh and you are going to use it for 3 years. Then the vallue of the computer (asset) Rs.1 lakh is capitalized (added)on the balance sheet and added under "equipment" account. Then every year Rs.33,000 is subtracted from this account to depreciate the value of the computer so that in 3 years it becomes 0. Does that make sense?

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