Fully depreciated machinery

169 views 1 replies

If A Manufacturing Company's Machinery's life has fully Depreciated in the Books.

But the company thinks to use the same Machine with some modification.

In this case how we have do account the cost, whether the cost fully to be charged as Expense or that cost should treat as a Fixed Asset.

Replies (1)

IF THE MODIFICATION IN MACHINARY GIVING FUTURE BENFITS THAN COST OF MODIFICATION IN  MACHINARY WILL  TREATED AS NEW MACHINARY AND DEPRICIATION WILL CHARGED AS PER THE CONDITION. 


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register