Capitalize

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anita (Querist)
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17 November 2020 If any entryof capitalize item and it's depreciation was made wrong in past year and came to know in current year then how to correct it in current year.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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17 November 2020 Charge it as expenses in the current year reverse depreciation.

anita

anita (Querist)
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17 November 2020 Sir
We have bought a cooler then dispose off it after 10years while disposing the item we have booked the entry in capitalize but it was not recorded in capitalize when we have bought.how to resolve it. Please clarify your answer

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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17 November 2020 Reverse the entry and take the sale value to other income.

anita

anita (Querist)
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18 November 2020 Sorry to say we have capitalize the asset few years back when we dispose off it. can we reverse its entry in this year.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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18 November 2020 In such a case no reversal required. Adjust the wdv against sale price and credit/debit the balance to p and l.

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