If expenses incurred regarding fixed Assets on or above Rs. 5000

This query is : Resolved 
Quick Summary
This discussion clarifies the accounting treatment for expenses related to fixed assets exceeding Rs. 5000. Generally, such expenses, including those for repairs and maintenance, should be capitalised. However, if the expense is for repairing an existing asset to maintain its original condition, it should be recorded under 'Repairs & maintenance' rather than capitalised.

Profile Image

Profile Image

(Querist)
13 February 2022 If expenses Incurred regarding Fixed assets on above Rs. 5000.(rs. Five thousand ) always should be capitalized, even incurred for repairs and maintenance Regarding, Any Fixed Assets.
or if any criteria then please reply also.
Profile Image

Dhirajlal Rambhia

Profile Image

Dhirajlal Rambhia (Expert)
13 February 2022 The capitalization is for new purchase, but not for repairs of existing asset.
Profile Image

Daya

Profile Image

Daya (Querist)
13 February 2022 If expenses incurred regarding existing Fixed assets and assets useful life more than 1 Years ,
what should to do.
Profile Image

Dhirajlal Rambhia

Profile Image

Dhirajlal Rambhia (Expert)
13 February 2022 If its for repairs of the existing asset for maintaining it to original shape/condition, account it under 'Repairs & maintenance'
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now



Similar Resolved Queries


loading


Unanswered Queries


Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Pro Member Samruddhi AgrawalSamruddhi AgrawalPro Member RAHUL SURANARAHUL SURANAPro Member Ravinder ReddyRavinder ReddyPro Member Chnmaya parhiChnmaya parhiPro Member DSK TMCDSK TMC
Subscribe to Pro
Join an elite circle of professionals



Answer Query



Quick Links



Browse by Category