banner_ad

Capitalisation of expenses

Others 740 views 4 replies

Dear members,

Pls tell me what is meant by capitalisation of expenses ? And what is the accounting treatment for that ?

In tally, can we know which are the capitalised expenses and which are not ? How?

Thanks...

Replies (4)
Capitalisation of a expense means debiting the Assets to which the expense belongs rather to a expense account. You can check the addition to the Assets account.whether addition made or not , if made it means capitalised.

Ya thats right , in capitalisation we add the expense to the value of that asset. Are there any guidelines to know which expenses are to be capitalised and which are not...?

Thnks for reply...

Actually it depend upon the nature of expense. some of which are 1)If that expense enhances the capacity of the assets significantly.2) increase the working life of the assets. 3) Expense relating to purchase of new assets. 4) Any other major addition.

ahree with vinit


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 15 May 2026
ARTICLE ASSISTANT, TRAINEE AND PAID ASSISTANT

YOGESH KAPOOR AND ASSOCIATES

New Delhi

B.Com

View Details
Company
Featured 26 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
19 May 2026
Article, CA & Paid Assistant Positions

Aggarwal Sarawagi and Co

New Delhi

CA

View Details
Company
29 May 2026
Accounts assistant

Shubh Consultancy

Mumbai

Graduate (Any)

View Details
Company
ARTICLESHIP 23 May 2026
Article Assistants

Acupro Consulting

Gurgaon

CA Inter

View Details
Company
Featured 28 May 2026
SEMI QUALIFIED/ CA DROPOUTS/ ARTICLES

T R SOOD & CO

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 15 May 2026
Audit Assistant / Article Trainee / Intern

SSGS and Associates

Chennai

CA Inter

View Details
Company
09 June 2026
Accounts Associate

S Madan and CO

New Delhi

Graduate (Any)

View Details