Exp.to capitalise

We have fitted  the water tank on the terrace of the building the bill of which included labour charges and all incidental charges like piping,screws,grilling,socket,nipples etc..And other then this labour charges also included in bill.Water tank charges is Rupees 8500,Labour is 1000 and all other fitting charges are rs.2193.What amount of bill should be capitalise?Please Advise

Replies (5)

The entire amount can be capitalised.

As per your quary 

cost of tank 8500 and labour charges 1000 and other fittings charges 2193 means total cost of tank  Rs 11693 you must capitalise whole amount bcoz the tank without incurred these cost can not function so you have to capitalised whole cost .....................................yes

The entire cost should be capitalised bcz all the costs are incurred to make the water tank to be put to use

All the costs incurred for bringing the water tank into functionality can be capitalized.

All costs incurred to make an asset put to use are capitalised.. in your question all exps including the labour charges have been incured to make the water tank be available to use ....

so just capitalise all costs till the first use of the tank... 

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