Assets purchased for sample flat

dear ritesh

as the construction company prepare a sample flat. it is a stock in trade for him and all the assets whether furniture, ac should be capitalised to the value of the flat

Agreed with Saurabh, they will be added to the capitalized to the vale of the flat.

It will be added to the value of flat. However as it is stock in trade for the construction company, it will increase it's cost & stock value by that. It can not be said as capitalized.

thanks to all

Originally posted by : CA Neil Ganatra
	It will be added to the value of flat. However as it is stock in trade for the construction company, it will increase it's cost & stock value by that. It can not be said as capitalized.

Agreed