1. For erection of Plant and machinery, civil work is done inside factory building. Whether it will be capitalized in Plant and machinery or in Factory Building?
2. A company wants expand a Unit. For Expansion of such Unit, Certain expenses have been incurred. These expenses are treated as Pre operative expenses in the books. Now, Govt brings out a policy which specifically says that this kind of Unit cannot be installed. Now, How these pre operative expenses will be dealt in the books of accounts?
Please reply soon for both questions separately with reasons.
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