What is Gross Block
This query is : Resolved
12 August 2025
Gross Block in Fixed Assets refers to:
The total original cost of all fixed assets (like land, buildings, machinery, vehicles, etc.) owned by a business, before any deductions for depreciation or impairments.
It includes the purchase price, import duties, non-refundable taxes, installation charges, transportation costs—basically, all expenses necessary to bring the asset to its present location and condition for use.
Example:
If a company buys a machine for ₹10 lakh and pays ₹50,000 for installation and transportation, the Gross Block will be ₹10.5 lakh.
Summary:
Gross Block = Cost of acquisition + all capital expenses on the asset.
Does not account for depreciation.
Used as the starting point to calculate the Net Block (Gross Block - Accumulated Depreciation).
The total original cost of all fixed assets (like land, buildings, machinery, vehicles, etc.) owned by a business, before any deductions for depreciation or impairments.
It includes the purchase price, import duties, non-refundable taxes, installation charges, transportation costs—basically, all expenses necessary to bring the asset to its present location and condition for use.
Example:
If a company buys a machine for ₹10 lakh and pays ₹50,000 for installation and transportation, the Gross Block will be ₹10.5 lakh.
Summary:
Gross Block = Cost of acquisition + all capital expenses on the asset.
Does not account for depreciation.
Used as the starting point to calculate the Net Block (Gross Block - Accumulated Depreciation).
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