04 June 2013
Construction of Laboratory including electrical fittings is done on the rented premises and then the premises was handed back to the landlord with all the modifications, please suggest the accounting treatment.
04 July 2013
You have not done any repairs to the premises of others therefore you have to capitalise it. In other words if there was already electrical line when you took the rented premises on rent then you can treat this as revenue expense but as regards labotary you cannot charge to revenue because it has connection with your business and landlord has nothing to do with it so capitalise it
CAclubindia
