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Rectification of errors

Raju sing (ok) (5 Points)

21 March 2016

A contractor's bill for extenction of permises amounting to 1000 has been debited to building repair account.

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Saliq Ansari (CA_Final Student) (885 Points)
Replied 22 March 2016

IF the said building (Extension) is still in construction and one of the construction related invoice for Rs. 1,000/- is wrongly booked as Building repair, then it should be rectified by crediting Building Repairs and Debiting Building Expenses.

Note: The Extension of building will result in Enhanced Performance or Useful Life or Benefit then that of original asset, to capitalise such expenses.

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