Account Head for certain transactions

Save Share

This query is : Resolved

Guest

Guest (Querist)

08 November 2009 X has hired a workshop for two wheelers repairs and service.

To make the workshop completely fit for business, X has done of its own the following activites / works:

Borewell and Plumbing works.

1. Purchase of Materials for borewell and
plumbing works.
2. Purchase of hardware materials.
3. Purchase of 1 HP Pumps.
4. Labour Charges.

Drainage work for Workshop

Same as in 1. to 4. above.

Water Wash facility

Same as in 1. to 4. above.

Electricity - 3 Phase connection.

1. Amount paid for 3 Phase connection.
2. Purchase of Materials / Cable
3. Labour Charges.
4. Expenses incurred at EB Office.

How do we account the above expenditure ?
What are the appropriate account heads ?

Experts response is highly appreciated.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

09 November 2009 Sir
As u very well know, expenditure incurred in rented premises and which have an enduring benefit can be capitalized.So all the expenditure can be capitalized and depreciated at the appropriate rates. The suitable account heads are :-
1) Bore well.
2) Building.
3) Building.
4) Electrical fittings.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now