capital wip

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advance payment made to developer for software development, is capitalised as a fixed asset? is it a proper accounting or should it be taken in capital wip until the charge of asset in hand or use.
Replies (1)

Any fixed assets are capitalisation from the date of installation.  You should have transfer the amount to Capital WIP. Please note that other expenses (up to installation) are also capitalised.

>> Rajesh


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