Expenses to be capitalised

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Dear All,

I am having following queries related to warehouse expenses:

Expenses are booked in books of accounts under the head “Warehouse expenses” like Tea, printer cartage, electricity bill for warehouse etc.  Another example expenses incurred for plantation at various sites and these expenses are booked under  the same head mentioned above i.e. Warehouse Expenses. Finally all the expenses accounted under this head are capitalised.

My 1st query is that all the expenes mentioned in the above para are accounted in proper head or not.

My 2nd query is that such expenses need to be capitalised or not.

Regards.....Bhushan

Replies (1)
Originally posted by : Bhushan

Dear All,

I am having following queries related to warehouse expenses:

Expenses are booked in books of accounts under the head “Warehouse expenses” like Tea, printer cartage, electricity bill for warehouse etc.  Another example expenses incurred for plantation at various sites and these expenses are booked under  the same head mentioned above i.e. Warehouse Expenses. Finally all the expenses accounted under this head are capitalised.

My 1st query is that all the expenes mentioned in the above para are accounted in proper head or not.

My 2nd query is that such expenses need to be capitalised or not.

Regards.....Bhushan

Expenses incurred upto the date of installation of machinery / trial output of the machineries shuold require to capitalise.


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