a company purchase a truck worth rs 50 lac and make payment of wage of driver to drive it to the premises of firm and also filled the fuel
so does this expenses considered as capital expenditure since the expenses is incurred to put the assets in ready to put to use
2- trial of newly purchased machinery is considered as capital expenditure??
The truck and driver expenses plus fuel must be capitalised.
Once you open the machinery package, depreciation starts based on the no. of days of usage. So trial expenses are operating expenses and must be expenses just like how daily operating expenses are expensed.
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