Accounting entry

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Expenses on electrical items and sanitary fittings in a new building are capitalized, not treated as repairs. They should be recorded under fixed assets, either within building WIP or as separate asset heads like electrical or equipment.

Sunil Singh Rawat

Sunil Singh Rawat (Querist)
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28 April 2017 in constructed new building we fitting 1.Electricity item (wire, pvc pipe, electric goods) 2. Sanitary ware ( water pipe,bathroom fittings, etc.) so please suggest account head for both items, weather its capitalize in Building (WIP) or other heads.

Sandeep Dharar

Sandeep Dharar (Expert)
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28 April 2017 I'll suggest to capitalize the transactions, as it is new installation and not repair. U may create a ledger office & equipment under fixed assets or create separate for office equipment and electric equipment.

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