Capitalisation of expense

anonymous (Accounts) (101 Points)

11 April 2014  

hii

while auditing the books i found that one showroom of the company has incurred 70000/- expenses on angle racks to be used for displaying items , and incurred 30000/- for labour charges. The amount of Rs 100000/- has been shown as Building in the Books But i think it should be shown in furniture. Also i have confusion whether to Capitalise the labour charges