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Capitalisation

This query is : Resolved 
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(Querist)
08 October 2008 Hello Sir

I am unable to understand "how to pass an entry for Capitalisation i.e., when you buy a Fixed Asset, we have to pass an entry for it and simultaneously we have to pass an entry for Capitalisation as well". Can you tell me the same Sir
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S.Srinivasaraghavan

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S.Srinivasaraghavan (Expert)
08 October 2008 On purchasing a capital asset:

Capital asset under installation Dr
To party(or Bank as the case may be)

Capital asset under installtion Dr
To Party/(or bank)
(various expenses incidental)

Fixed asset a/c Dr
To Capital asset under installation
(When the assets are installed)
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