banner_ad

Capitalization

This query is : Resolved 
Profile Image

Profile Image

(Querist)
06 July 2011 Amount paid for purchase of a part of a machinery which is having a life of less then a year but costing Rs 30000/-. Will it be capitalize or not?? Please provide me case study with suggestion.
Profile Image

CMA Nishad Patkar

Profile Image

CMA Nishad Patkar (Expert)
07 July 2011 Dear Sujit,

Amount is not a factor of consideration to decide , whether the expenditure is revenue or capitalized. A main condition of capitalization is that any asset expected to be used for more than one accounting year. Since the asset's life is less than a year and expected to use less than a year, it is treated as revenue expenditure in the year of acquisition.

Regards,

Nishad
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
23 May 2026
Article Assistant

Geeta Manchanda & CO.

New Delhi

CA Inter

View Details
Company
08 May 2026
CHARTERED ACCOUNTANT

SHAH LADHA AND ASSOCIATE

Ahmedabad

CA

View Details
Company
27 May 2026
Audit Assitant

Virender K Gupta and Co

New Delhi

B.Com

View Details
Company
09 May 2026
Audit Manager

Kanna and Associates

Coimbatore

CA Inter

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
ARTICLESHIP 15 May 2026
ARTICLE ASSISTANT, TRAINEE AND PAID ASSISTANT

YOGESH KAPOOR AND ASSOCIATES

New Delhi

B.Com

View Details
Company
11 May 2026
Post office

Post office

Anakapalle

Others

View Details
Company
29 May 2026
Company Secretary - Part time

Shaswat initial support private limited

Ahmedabad

CS

View Details