I want to Know what is a Capitalization of Fixed Assets and how the same is posted i.e. what the entry has to be passed for the capitalisation of FA?.
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Capitalisation of fixed assets
Replies (4)
Fixed Asset dr.
To bank.
To bank.
capitalization means you show the expense incurred as an asset in the balance sheet and charged it to revenue on a periodic basis.
cn we take credit of capitalize expense?
All the expenses incurred towards the fa must accumulated and added to the value of fa..as to know the total value of fa..including.. loading, unloading, installation, legal certifications etc..
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