New Star Hotel

All pre-Operating expenses are expensed if they don’t fall under plant. Here, since it is falling under plant and equipment, capitalise the expenses. 

Fixed assets a/c

To Bank a/c

in ERP I wonder how it is done. Supposing PPE is 10,000 and expenses related to bringing the asset to life like above is 1000₹, then

Fixed asset 10,000₹

Painting expenses 1,000₹

To bank 11,000₹

Th ledgers usually are payables, bank, expenses