Fixed Asset Accounting.

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This discussion explores the correct accounting treatment for gas top-ups on new air conditioners. The consensus suggests that if the gas top-up is part of the initial installation and is necessary for the AC to function, it should be capitalised as part of the fixed asset cost. However, if it's a separate maintenance activity after the initial purchase and installation, it might be treated as a repair or maintenance expense.

sandeep

sandeep (Querist)
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21 October 2020 Sir/ Madam.

If we have purchase a new Air Conditioner and top-up gas in to the same then the topping of gas to be include in Air Conditioner cost and capitalized the same or gas topping book as the maintenance cost?
Thanks

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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21 October 2020 New air-conditioner top up to be done by supplier free of cost. Deduct the amount to supplier payment.

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sandeep

sandeep (Querist)
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21 October 2020 Thanks SEETHARAMAN sir,

In Our case AC supplier and installer are two different vendors. Can you please advice the accounting treatment for Gas top-up.

Thanks

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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21 October 2020 Capitalise it being the new one.

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