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Capitalized meaning

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26 December 2014 What is the meaning of capitalized. Generally an entrance fee is capitalized means what is accounting entry and how it be shown in P&l,Balancesheet.

Thanks in advance
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CA Devanand Jethanandani

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CA Devanand Jethanandani (Expert)
26 December 2014 Expenditure which are not revenue expenditure are called capital expenditure.

Capital expenditure includes acquiring fixed assets, property etc. Capitalized means expenditure is debited as capital expenditure.

Entry,
Name of asset Dr.
To bank
Capital expenditure will not affect P&L, being asset it is shown in Balance sheet on assets side.
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