31 July 2010
If the repairs expenses increase exisiting capacity or using capacity then it can be added to fixed asset value otherwise charge off to p&l a/c, it will not part of depreciation
31 July 2010
but if the expenditure is incurred on account of consumables on C.T. Scanner , Will it become part of depreciation? and how can be define consumables on c.t. scanner
31 July 2010
but if the expenditure is incurred on account of consumables on C.T. Scanner , Will it become part of depreciation? and how can be define consumables on c.t. scanner
a) any repair expemses should be charged off to the profit and loss account in the year in which they are incurred. b) however the repairs expenses which clearly evident of increase in the life/capacity of the asset, it should be capitalized along with the asset and charge depreciation thereof. c) but on account of expenditure incurred on consumables on C.T Scanner, which is of course form part of general maintenance and should definitely be charged off to the profit and loss account. d) defining consumables you need gain an understanding of the CT Scanner, features, utilities, and operating conditions, etctctct.......
CAclubindia
