ACCOUNTING TREATMENT
This query is : Open
Guest
Guest
(Querist)
16 March 2011
IN THE TEXTILE MILLS, THERE ARE NORMALLY HEAVY EXPENDITURE ON THE MACHINERY MAINTENANCE.
MY QUERY IS THAT IS IT DIRECT EXPENSE TRANSFERRABLE TO THE MANUFACTURING AC. OR NOT?
MY QUERY IS THAT IS IT DIRECT EXPENSE TRANSFERRABLE TO THE MANUFACTURING AC. OR NOT?
16 March 2011
REPAIRS EXPENSES CAPITALISED ONLY WHEN FOR THE REASON OF REPAIRS, INCREASED FUTURE ECONOMIC VALUE/BENEFITS OR INCREASE IN USEFULL LIFE OF MACHINERY.
16 March 2011
I too agree with Ravi
and it will be form part of Profit and loss a/c only.
if u want to give separate p&l to management there you can give wht ever u want
and it will be form part of Profit and loss a/c only.
if u want to give separate p&l to management there you can give wht ever u want
16 March 2011
MOSTELY REPAIRS EXPENSES TREATED AS REVENUE EXPENDITURE AND CHARGED TO P&L A/C.
IF VERY HAVEY REVENUE EXPENDITURE INCURRED THEN IT CAN BE DEFFERED AND AMORTIZE.
IF VERY HAVEY REVENUE EXPENDITURE INCURRED THEN IT CAN BE DEFFERED AND AMORTIZE.
16 March 2011
agreed to experts,yes it will be depending upon the situation bt mostly its use to charge in P&L A/c.
Guest
Guest
(Querist)
17 March 2011
thanks for the reply experts, my query was that as machinery maintenance is part of production in the textile mills , than what should be the treatment olz. clarify in detail
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