Capitalization of assets
This query is : Resolved
13 June 2014
A school is purchased a land. school done some JCB leveling work and built boundary only and debited such expenses under land cost ...can it is a land cost or building cost..
Guest
Guest
(Expert)
13 June 2014
u can capitalise it under boundary wall rather than land cost dear..........
13 June 2014
as per your view sir, than boundary will be depricated ...and deprication charz on boundary wall
13 June 2014
Fencing Cost can very well be capitalised and depreciated....however leveling cost may be treated as revenue cost in the cases of existing units and capital cost in the cases of newly established units.
13 June 2014
thank you sir for your important views
13 June 2014
sir if school maintain a capital fund (building) from whole admission money which receive from student at the time of his/her admission.. than how to deal with such land addition ,can its show separately as a addition in Fixed assets or deducted such expenses from capital fund (Building) a/c only and not show any addition in books..
14 June 2014
No. The deduction from Capital Fund would be a wrong policy and disclosure. It should be shown as addition to fixed asset.
14 June 2014
sir, but school done such police in earlier .school not show any kind of addition in earlier 2-3 financial year. can you sir pls provide me any link ...where it is clearly mention that its is a wrong process Eiger off accounting....
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