Capitalisation of leased asset


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Querist : Anonymous

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Querist : Anonymous (Querist)
21 June 2013 A company has lend its asset on lease. It has
deducted VAT on it. On 31st March, the company has capitalised the same asset.
Is it allowed? and what is the acounting treatment?


Rupesh Jain (Expert)
21 June 2013 company can caitalised its assets.
but in notes on accouts co declare that assets on lease..


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Querist : Anonymous

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Querist : Anonymous (Querist)
21 June 2013 What if the company is in manufacturing of the above said asset. Now it has leased it. Is capitalisation allowed or should it be shown as stock ??

Rupesh Jain (Expert)
21 June 2013 r/sir

machinery taken as stock
then you can not claim depreciation

it is better to take under fixed assets and claim depreciation


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