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Charges paid to interiror decorator is to be capitalised

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Querist : Anonymous

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Querist : Anonymous (Querist)
03 April 2014 Our company has hired the services of Interior Decorator for designing of the showroom and now the Interior Decorator has raised a bill of Rs. 5 Lakhs. So whether the same is to be capitalized or booked as revenue. Pls clairfy with reason
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CA Deven

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CA Deven (Expert)
03 April 2014 it needs to be capitalized as it will increase working life of showroom.
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