Which accounting principle justifies treating a calculator as an expense rather than a fixed asset?
A. Dual Aspect
B. Consistency
C. Materiality
D. Going Concern
Answer: Option C
Solution (By JKSSB Mock Tests)
The Materiality principle states that trivial costs (like a calculator) should be expensed immediately rather than capitalized and depreciated, due to their immaterial impact.
Explanation:
Section 80D allows a deduction of up to ₹25,000 for health insurance premiums paid for self, spouse, and dependent children (if below 60 years). For senior citizens, the limit is ₹50,000.
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