Dear all ,
How to captalise expenses in Tally by making rectifying enteries. As i am asked to Captalise the expenses by my senior as f.y. 2013-2014 ending.
1. Which expenses to captialise
2. How to capitalise those expenses in tally.
Please help
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How to differentitate apital expenditure and revenue expendi
Replies (2)
Dear Jitender, capitalisation of expenses mean booking expenses in assets. Say you made some major repairs in machinery which addup the life of machine then take it to asset accounts and not in expenses a/c. Regards
1) Capitalisation of exps or Add it assets value :- Those expenditure which increases the future benefits from existing asset beyond its previously assessed standard of performance.
if this is not done then it will be non compliance of AS-10 and auditor will qualify based materiallty concept.
2) Rectify these entries :- Keep the original entry as it is and pass rectification entry on same date
Entry :- Relevant Asset A/c Dr & Relevant Exps Cr
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