06 November 2012
Frieght and unloading charges was paid for the purchase of cement used for the construction of building whihc is taken uner Building WIP Account in the books of accounts of college. Whether such charges also to be capitalised alongwith the cement purchases for the purpose of depreciation..??
06 November 2012
Yes. Whatever expenses whether revenue or capital in nature are to be capitalized till the date of completion of building. All revenue expenses shall be appropriated to the concerned block of assets after their completion and accordingly eligible for depreciation.
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