Damage of solar panel by monkey

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1359 Points Posted on 04 June 2022
1-Damage of solar panel by bl monkey accounting treatment
2 does repairing of this solar panel is capital expenditure
note - solar panel is fully damaged
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On 04 June 2022 at 12:37 Report
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This discussion explores the accounting implications of solar panels damaged by monkeys. It considers whether repairs should be treated as capital expenditure or revenue expenditure, especially if the panels are fully damaged. The options of repairing, writing off the asset, or selling for scrap are examined, with advice on capitalising repairs that extend the panel's life.

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GST Consultant
15986 Points Posted on 04 June 2022
If repairs are not to be done then transfer asset to asset write off account in pl.
Repairs done will be of revenue nature
If repairs done after writing off then repairs will be capitalised. This however is not recommended.
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On 04 June 2022 at 14:21
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Chartered Accountant
5010 Points Posted on 04 June 2022

If this repair will increase the life of the solar panels then treat as capital expenditure. 

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On 04 June 2022 at 15:48
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1359 Points Posted on 04 June 2022
Due to damages by monkey the panels are not working now the firm have two option either reparing or sell it as scarp so does this repair is capitalised or not
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On 04 June 2022 at 18:43

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