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Assets purchased for sample flat

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Ritesh khurana

CA student

175 Points Posted on 11 January 2012

Hello

A construction company purchased furniture , AC , Refrigrator and various equipments Like Lighting etc. for its sample flats situated at various sites

Question is

all above assets is fixed assets for construction company and depreciation is admissible

company can claim it revenue expenditure

Thanks and regards

Ritesh

Replies (5)

Saurabh Malpani

CA Final

514 Points Posted on 11 January 2012

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

Jinay

Article

172 Points Posted on 11 January 2012

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

CA Neil Ganatra

Partner - Gautam Joshi & Co.

871 Points Posted on 11 January 2012

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.

Ritesh khurana

CA student

175 Points Posted on 16 January 2012

thanks to all

CA. ANKUR JAIN

CA.....

2800 Points Posted on 16 January 2012

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.