Booking of Expenditure in the books of accounts
This query is : Resolved
08 February 2009
if a company dig a pond for handling of ash what should be treatment of this expenditure wether it should be capitalized or charged to revenue. huge amount is involved.
08 February 2009
Can elaborate more on the question such as nature of business, amount of expenditure, reason for expenditure?
10 February 2009
Nature of Business: Thermal Power Plant
Amount involved: Rs. 4.00 crores appox.
Reasons for expenditur: for handling the ash arises out of coal based boilers. This pound will handle the ash for five to seven years.
Amount involved: Rs. 4.00 crores appox.
Reasons for expenditur: for handling the ash arises out of coal based boilers. This pound will handle the ash for five to seven years.
10 February 2009
Yes.
The amount should be capitalized.
The amount should be capitalized.
11 February 2009
Thankyou Sir, Kindly also confirm whether we should amortize it in its useful life or any other method for charging the amount to expenditure every year.
12 February 2009
In its determined useful life.
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