We have purchased a 1000 LPH RO plant which is to be installed at company owned farm house and our cmd will reside there in weekends
Will this is to be capitalised under Building or Office Equipment or Plant and machinery
kindly guide with explanation
5 Replies
CA Rashmi Gandhi
(Chartered Accountant)
(86323 Points)
Replied 07 February 2023
Capitalised under Plant & Machinery
MPR Sanjay Kumar
(3118 Points)
Replied 08 February 2023
@ Rashmi mam, Actually capitalisation means what ? why we are capitalising ..plse explain with example
Vipul Acharya
(Account Officer)
(647 Points)
Replied 08 February 2023
How can we show this under Plant & Machinery, this is not for business purpose
Though it is company owned farm house, but will used for personal living or leisure
Though it is company owned farm house, but will used for personal living or leisure
CA Rashmi Gandhi
(Chartered Accountant)
(86323 Points)
Replied 09 February 2023
Okk then add it to the cost of residential house
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