every one saying"you haven't capitalised that expense!"
what does it mean?
6 Replies
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 03 August 2018
That Expense means what...?
Prakash Gehani
(Consultant & Teacher(Whatsapp 8718057907))
(1306 Points)
Replied 04 August 2018
An expense shall be capitalise:
If new asset is acquired,
If new asset is constructed,
If it results in increase in revenue generatin capacity,
If it results in increase in effiviency,
It provides enduring benefit.
Basically capitalise means such expense will be part of cost of asset and will be written off in no. of years, as such expense provide enduring benefit.
for eg. Wages paid to labour for construcion of building will be debited to building account instead of wages account, installation charges on machinery will be debited to machinery account instead of Installation charges account.
If new asset is acquired,
If new asset is constructed,
If it results in increase in revenue generatin capacity,
If it results in increase in effiviency,
It provides enduring benefit.
Basically capitalise means such expense will be part of cost of asset and will be written off in no. of years, as such expense provide enduring benefit.
for eg. Wages paid to labour for construcion of building will be debited to building account instead of wages account, installation charges on machinery will be debited to machinery account instead of Installation charges account.
Anush Ram
(160 Points)
Replied 04 August 2018
Thank you so much!!!!
I got some idea, after reading this
I got some idea, after reading this
brijesh kumar
(student)
(61 Points)
Replied 04 August 2018
First of all you should learn about the revenue nature and capital nature of expenses or income then you understand better these
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 04 August 2018
@ Brijesh Kumar.,
What You say here to the Query...?
Can anybody criticise to others but result will be required to the query...!!!
If you have details then post/reply to query...
If not then wait or go to get details and post here...
But, Don't be ignored members... 🤐
What You say here to the Query...?
Can anybody criticise to others but result will be required to the query...!!!
If you have details then post/reply to query...
If not then wait or go to get details and post here...
But, Don't be ignored members... 🤐
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