I have a building, and the building is under repair and maintenance for this I have been charged some money. the maintenance and construction work has been doing by local laborers. Here my question is the cost whatever I incur to renovate the building must be shown in P&L or in Balance sheet as a Asset or as a Expenditure?.
07 March 2020
Due to renovation you are getting enduring benefits as the same is going to increase the life of the asset. So it is advisable to capitalise the expenditure. Prepare vouchers and get signed them from the payee.
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