cost incurred by firm to sell asset( machinery & plants) is recorded in which account and what is the name for the account???
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Quick Summary
This discussion clarifies how to account for expenses related to selling business assets, specifically machinery and plants. While costs incurred to get an asset ready for use are capitalised, the question focuses on expenses like advertising incurred when the intention is to sell the asset. The consensus points towards recording these selling costs as an expense, rather than capitalising them.
As per accounting standard cost incurred for firm is debited to asset account. Cost of improvement and other expenses till the asset is put to use is capitalised as per accounting standard 10.