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Classification of expenditure

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Querist : Anonymous

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Querist : Anonymous (Querist)
30 May 2014 Helloo sir,
I have a doubt regarding Nature of expenditure, an amount of 200000 was paid tp apepdl for electrical transformer for new building and it was charged to p&l a/c as electricity charges.Can u plzz advice us with the right accounting treatment.

very urgent
plzz advice
thnqqq
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Guest

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Guest (Expert)
30 May 2014 i think it must b legal expenses....
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Rupesh Jain

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Rupesh Jain (Expert)
31 May 2014 payment of purchase and installation of transformer will capitalized under plant & machinery or electrical installation.
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