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
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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CAclubindia
