An entity is starting a Pre Nursery School have done a considerable expenditure on development of building, obtained through lease, furniture, security, buses etc. Also a lot of amount spent (around 1.5lacs)on Garden(plants) on Purchasing, manure/fertiliser and maintenance.
Whether it should be capitalise or not?
or
It should be revenue expenditure??
Yes it should be capitalised as the school is a newly organised one, and whatever expences to bring the area in to garden at the begining is capitalised.
Under which Head it should be capitalised?
A separate account-named Garden or merged with building a/c ????
mostly to Building or premisses
You can compare the building value and then if the Garden expenses is material you can show seperatly under land and buildings
CAclubindia
