Hello
A construction company purchased furniture , AC , Refrigrator and various equipments Like Lighting etc. for its sample flats situated at various sites
Question is
all above assets is fixed assets for construction company and depreciation is admissible
or
company can claim it revenue expenditure
Thanks and regards
Ritesh
dear ritesh
as the construction company prepare a sample flat. it is a stock in trade for him and all the assets whether furniture, ac should be capitalised to the value of the flat
Agreed with Saurabh, they will be added to the capitalized to the vale of the flat.
It will be added to the value of flat. However as it is stock in trade for the construction company, it will increase it's cost & stock value by that. It can not be said as capitalized.
thanks to all
| Originally posted by : CA Neil Ganatra | ||
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It will be added to the value of flat. However as it is stock in trade for the construction company, it will increase it's cost & stock value by that. It can not be said as capitalized. |
|
Agreed
CAclubindia
