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Capitalize or Not???

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Aparna Raja K.C (Student) (520 Points)
Replied 10 June 2011

Even through we will be prone to think that it should be capitalised.. it is not so.

this expenditure does not shw any character of capital expenditure..

it does not incresase the earning capacity of the firm nor

it increases the life of any fixed asset.

 

so considering all these.. the expenditure should be debited to P&L..



CA,CMA,CS Karan Gogia (Employed) (230 Points)
Replied 10 June 2011

not to b capitalised



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