Exp on rented property

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This discussion addresses how to book substantial contraction expenses incurred on a rented factory with a three-year lease. Suggestions include capitalising the expenses and charging depreciation over the lease period, or amortising the expenditure. The lease rent itself is also noted as business income.

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(Querist)
14 September 2021 Hello, everyone..... Good Evening....... My Company incurred a big amount of contraction expense on rented factory premises and lease period is 3 years.
now my ques is how can I book these expense ...........
kindly suggest an appropriate accounting method........
thanks in advance
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
14 September 2021 Capitalise the expenses and charge depreciation as business expenses. Treat lease rent as business income.
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Dhirajlal Rambhia

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Dhirajlal Rambhia (Expert)
15 September 2021 If your company is lessee, the expenditure can be amortized over the lease period.
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