anony (MANAGER) (145 Points)
17 May 2011DEAR SIR,
WE ARE A KRAFT PAPER MANUFACTURING FIRM, HAVE PURCHASED INDUSTRIAL CABLE 33 KVA ALUMINIUM ARMED FOR6,76,901/-
I WANT TO KNOW WHETHER IT SHOULD BE CAPITALISED OR NOT.
SIR MY QUESTION IS, HOW TO SHOW IT IN OUR BOOKS OF ACCOUNTS? WHAT IS ITS TREATMENT?
SIR, WE HAVE PURCHASED IT FOR OUR EXPANSION PROJECT.
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 17 May 2011
its property of electricity board, despite of the fact that its purchased by you.
lokesh maheshwari
(partner)
(62 Points)
Replied 18 May 2011
as per Mr. Sharma if it is property of electricity board then it will be treated as a revenue expenditure and debited to Profit & Loss Account
DIVYA PINCHA
(ASSISTANT MANAGER:MERCHANT BANKING)
(537 Points)
Replied 18 May 2011
agreed with Mr. Sharma
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 18 May 2011
| Originally posted by : lokesh maheshwari | ||
 |
as per Mr. Sharma if it is property of electricity board then it will be treated as a revenue expenditure and debited to Profit & Loss Account |
 |
in plain way its to be allowed in expenditure,
but as per query, its purchased for expansion project, means its not yet put in use, so unless its put in use it would retain in "consumable stock" and when put in use by electricity board, it would reflect in expenditure, as "electrification expenses"
CAclubindia
