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Garden for pre nursery-capitalisation problem??


Ankit (C.A.-Student)     05 July 2013

Ankit
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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??

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Bhaavna (Queen )     06 July 2013

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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.

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Ankit (C.A.-Student)     06 July 2013

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Under which Head it should be capitalised?

A separate account-named Garden or merged with building a/c ????

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Bhaavna (Queen )     06 July 2013

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mostly to Building or premisses

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Bhaavna (Queen )     06 July 2013

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You can compare the building value and then if the Garden expenses is material you can show seperatly under land and buildings


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