a machinery purchase bill amount Rs 80000 and advance payment made to the supplier rs 78000 before purchase of machine and rs 2000 wrtten off as petty balance ,my question is amount by which machinery will be capitalised
CA rahul (BCOM(H) ACA) (725 Points)
28 August 2011a machinery purchase bill amount Rs 80000 and advance payment made to the supplier rs 78000 before purchase of machine and rs 2000 wrtten off as petty balance ,my question is amount by which machinery will be capitalised
SUHAS MITRA
(ARTICLE ASSITANT)
(54 Points)
Replied 28 August 2011
COSTS INCURRED TO BRING MACHINERY INTO PRESENT WORKING CONDITIONS SHOULD BE CAPITALIZED , COST INCURRED HERE WOULD MEAN ACTUAL PAYMENT MADE ( IN THIS CASE Rs. 78000/- )
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