hello frnds....
a comapny incurred the expenses of fitting window with glass in a room and treated it as capital expenditure and capitalised it in its building furniture is the treatment is right as per accounting standard????
Rahul jain (LEARNING & TEACHING) (435 Points)
19 February 2014hello frnds....
a comapny incurred the expenses of fitting window with glass in a room and treated it as capital expenditure and capitalised it in its building furniture is the treatment is right as per accounting standard????
Kumar Gaurav
(Going...to be C.A soon...)
(1624 Points)
Replied 19 February 2014
Capital expenditure, as opposed to revenue expenditure, is generally of a one-off kind and its benefit is derived over several accounting periods. Capital Expenditure may include the following:
in my opinion above treatment is right.
Rahul jain
(LEARNING & TEACHING)
(435 Points)
Replied 19 February 2014
if comapnay treat it as maintenance expense....is it voilation of accounting standanrd?
Kumar Gaurav
(Going...to be C.A soon...)
(1624 Points)
Replied 19 February 2014
ofcourse, they can not charge the same through P&L as a whole.
Rahul jain
(LEARNING & TEACHING)
(435 Points)
Replied 19 February 2014
cool...thnx dear,,,,and plz tell me that a company install the water filter for availability of good drinking water for employee with a water cooler is it treated as asset or revenue expenses??
Kumar Gaurav
(Going...to be C.A soon...)
(1624 Points)
Replied 19 February 2014
It should be capitalized.(F.Assets)
Rahul jain
(LEARNING & TEACHING)
(435 Points)
Replied 19 February 2014
vry fine dear...thnx a lot....