Capitalization of expense

This query is : Resolved 
Quick Summary
When acquiring a new vehicle, expenses such as logistics, delivery charges, and TR amounts can generally be capitalised as part of the asset's cost. Any discounts received should be deducted directly from the asset's value. If a credit note is issued for a discount, this should also be reflected by reducing the asset's value.

Profile Image

Profile Image

(Querist)
19 February 2020 can we capitalize expenses like Logistics & delivery charges, TR amount for Vehicle??
and let me know the discount need to less from asset value or reduce from Maintenance of vehilce? which is correct way ??
Profile Image

Gokul Sharma

Profile Image

Gokul Sharma (Expert)
19 February 2020 ALL EXPENSES RELATED TO NEW VEHICLE CAN BE CAPITALISED. discount should be reduce from asset value.
Profile Image

Amol S Joglekar

Profile Image

Amol S Joglekar (Expert)
19 February 2020 The expenses related with the purchase can be capitalised. Discount should be reduced from the value
Profile Image

thotasrinivas

Profile Image

thotasrinivas (Querist)
19 February 2020 they gave credit note. how to account for? need to reduce from asset?
Profile Image

Amol S Joglekar

Profile Image

Amol S Joglekar (Expert)
19 February 2020 yes, you can do the same by reducing the value
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now



Similar Resolved Queries


loading


Unanswered Queries


Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Pro Member Somnath MaitiSomnath MaitiPro Member shubham agrawalshubham agrawalPro Member Fredrick SamrajFredrick SamrajPro Member arun luharukaarun luharukaPro Member RAJ SANKLECHARAJ SANKLECHA
Subscribe to Pro
Join an elite circle of professionals



Answer Query



Quick Links



Browse by Category