Raman Sharma (@ Accountant) (125 Points)
03 June 2013We have fitted the water tank on the terrace of the building the bill of which included labour charges and all incidental charges like piping,screws,grilling,socket,nipples etc..And other then this labour charges also included in bill.Water tank charges is Rupees 8500,Labour is 1000 and all other fitting charges are rs.2193.What amount of bill should be capitalise?Please Advise
CA Suraj Lakhotia
(IndigoLearn)
(4898 Points)
Replied 03 June 2013
The entire amount can be capitalised.
veeru sagar
(BBE,M.com,CA Final )
(468 Points)
Replied 03 June 2013
As per your quary
cost of tank 8500 and labour charges 1000 and other fittings charges 2193 means total cost of tank Rs 11693 you must capitalise whole amount bcoz the tank without incurred these cost can not function so you have to capitalised whole cost .....................................
pulluruvikas
(1)
(26 Points)
Replied 03 June 2013
The entire cost should be capitalised bcz all the costs are incurred to make the water tank to be put to use
M.Sriram Shenoy
(CA Final)
(814 Points)
Replied 04 June 2013
All the costs incurred for bringing the water tank into functionality can be capitalized.
Komal Thakur
(CA Final)
(925 Points)
Replied 04 June 2013
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