Travelling expenses for trial of assets to be purchased

AS 776 views 2 replies

A company was ordered a machine with some specifications to foreign supplier. An employee goes to the place of supplier for trial of the machine ordered. The query is that the travelling expenses related to above visit either capitalized or transferred to P&l A/c.

Please give a referrence of Accounting Standard also, if possible.

Replies (2)

Simple..Travelling Expenses incurred for trial of asset purchased should be capitalized..

Thanks khusal for reply...

but machine is not purchased till date.. then the expenses will be capitalized under CWIP ??


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register