Compound wall expenditure

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rakesh (Querist)
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21 January 2009 Dear All,

I am in construction company, we generally follow practice of showing compund wall expenditure separate from Land expenditure under the head of developement expenses.

Now my question is whether it is right accounting policy or it should be shown as land expenses only.

Please let me know solution for the same with reason.

Thanking You

Regards
Rakesh

sheena Teckchandani

sheena Teckchandani (Expert)
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21 January 2009 Compound wall expenses should be kept separate from land cost and should be added to the cost of construction to claim depreciation on it.

K V Subba Rao

K V Subba Rao (Expert)
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21 January 2009 Very logical answer by Sheena

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rakesh

rakesh (Querist)
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24 January 2009 For us it is nothing but sttock in trade so any how we cant take depreciation benefit on the same.

Sheena please give me v v specific answer.

Thanks for your interst.