L KANAGARAJ (Assistant Manager-Finance) (615 Points)
04 December 2017If A Manufacturing Company's Machinery's life has fully Depreciated in the Books.
But the company thinks to use the same Machine with some modification.
In this case how we have do account the cost, whether the cost fully to be charged as Expense or that cost should treat as a Fixed Asset.
Krishna Chaudhary
(Accountant)
(4531 Points)
Replied 04 December 2017
IF THE MODIFICATION IN MACHINARY GIVING FUTURE BENFITS THAN COST OF MODIFICATION IN MACHINARY WILL TREATED AS NEW MACHINARY AND DEPRICIATION WILL CHARGED AS PER THE CONDITION.
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