Capitalization of fixed assets
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
30 November 2015
Suppose a company has two units.
A machine Costing Rs 10,50,000 (Basic cost 1000000 + CST 20000 + Carriage 15000 + L&U charges 15000) purchased at unit A but not capitalized.
Now this machine transferred to Unit B incurring transport cost of Rs 20000.
So what is the amount to be capitalized at Unit B.
A machine Costing Rs 10,50,000 (Basic cost 1000000 + CST 20000 + Carriage 15000 + L&U charges 15000) purchased at unit A but not capitalized.
Now this machine transferred to Unit B incurring transport cost of Rs 20000.
So what is the amount to be capitalized at Unit B.
Amol S Joglekar
(Expert)
30 November 2015
What is the time gap between receiving machine at unit A and then transporting it to unit B?
If it is concurrent and imediate, capitalise the transport cost, else it can be treated as revenue expenditure.
If it is concurrent and imediate, capitalise the transport cost, else it can be treated as revenue expenditure.
Prasad Kadam
(Querist)
30 November 2015
What is treatment of Carriage & L&U exp incurred at Unit A. will it b capitalised??
Amol S Joglekar
(Expert)
01 December 2015
yes, capitalise the same at Unit A.
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