Capitalisation of expenses
This query is : Resolved
15 June 2014
SUPPOSE A TRAILER HIRING COMPANY SPENDS RS. 2,00,000/- OR MORE IN REPLACING THERE TYRE OF THE TRAILERS CAN IT BE CAPITALISED ON THAT PARTICULAR TRAILER
Nikhil Kaushik
(Expert)
15 June 2014
does this company keeps the trailer for more than a year? if not, then expense it out.
15 June 2014
only if there is increase in the performance compared to prev assessed performance or to maintain the same efficicieny of performance.
Rupesh Jain
(Expert)
16 June 2014
it is running exp of that vehicle . charge to profit and loss a/c
Nikhil Kaushik
(Expert)
16 June 2014
Rupesh Bhai, running expense include petrol, oil, driver's salary et cetc..engine, tyres etc are not running expense but capital items
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