What is type of incidental expenses

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Incidental expenses related to fixed assets are costs incurred to make the asset ready for its intended use. These can include charges such as transportation to get the asset to your business premises and installation costs. Both types of expenses are typically capitalised and added to the original cost of the fixed asset.

Daya

Daya (Querist)
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28 June 2022 what is type of incidental expenses while booking Fixed assets in books of accounts.

CA Puja Sharma

CA Puja Sharma (Expert)
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28 June 2022 Incidental expenses refers to those expenses which have been incurred to make the FA useful and put to use for the bsuiness.
For eg. In cas eof Generator, if you have Rs. 10000 as transportation chrages for delivery to factory then this 10,000 will eb incidental charges and will be capitalsied with generator.

Daya

Daya (Querist)
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28 June 2022 Ma'am,
installation charges can also be part of Fixed assets.

CA Puja Sharma

CA Puja Sharma (Expert)
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01 July 2022 Yes installation charges can also be part of Fixed Assets.

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