CAPITAL / REVENUE EXPENDITURE
This query is : Resolved
17 December 2008
Dear all
My company has purchased a new car and insurance charges for one year has been paid to vendor at the time of purchase. i want to know whether such charges will be capitalsed or not? please suggest the treatment ASAP.
My company has purchased a new car and insurance charges for one year has been paid to vendor at the time of purchase. i want to know whether such charges will be capitalsed or not? please suggest the treatment ASAP.
17 December 2008
Insurance premium paid at the time of purchase of car is capital expenditure.
17 December 2008
Included in capital expenditures are amounts spent on:
acquiring fixed assets
fixing problems with an asset that existed prior to acquisition
preparing an asset to be used in business
legal costs of establishing or maintaining one's right of ownership in a piece of property
restoring property or adapting it to a new or different use
starting a new business
Hence, Insurance paid by you is a capital expenditure.
acquiring fixed assets
fixing problems with an asset that existed prior to acquisition
preparing an asset to be used in business
legal costs of establishing or maintaining one's right of ownership in a piece of property
restoring property or adapting it to a new or different use
starting a new business
Hence, Insurance paid by you is a capital expenditure.
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