I have one client which is a charitable trust. Trust made a one floor building for making that building they employed labours they spent money for snacks and tea for that labours. So should i capitalised such expenses under the head building or not. if not then how should i treat it
06 September 2009
You cannot capitalise the expenditure realting to snaks and tea, it should be treated as revenue expenses and debit to refreshment expenses.
CAclubindia
