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Trail run expenses

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(Querist)
02 August 2012 what is the meaning of trail run expenses?? what is its accounting treatment??
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CA mahesh birla

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CA mahesh birla (Expert)
02 August 2012 exp. incurred for taking of trial of macinery etc called trial run exp. these are in the nature of pre operative exp.
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SANYAM ARORA

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SANYAM ARORA (Expert)
02 August 2012 Are expenses which helps the machine to get set up.
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VIJENDRA DARGAR

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VIJENDRA DARGAR (Expert)
03 August 2012 Newly installed plant or machinery when run on trial all the expenditure associated with this trial run is called trial run expenses.


These expenses are capitalized i.e. added to the cost of plant/machinery.

Further, the production from this trial run if sold the proceeds are deducted from the cost of the asset.

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