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?

CA Ravi Sisodia

CA Ravi Sisodia (Expert)
Follow

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.

sudhakar ca cwa

sudhakar ca cwa (Expert)
Follow

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

CA Ravi Sisodia

CA Ravi Sisodia (Expert)
Follow

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.

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
Follow

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

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

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

MURALIKRISHNA EDDANAPUDI

Ashutosh Purohit

K.S. ANANTHARAJAN

Rasheed Mohd Abdul

Ravi

Subscribe Now

ACCOUNTING TREATMENT

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Article Assistant

GST CONSULTANCY

CA Final

Manager- Finance and Compliance

Accountant

GST CONSULTANT