Query on capital expenditure

a company purchase a truck worth rs 50 lac and make payment of wage of driver to drive it to the premises of firm and also filled the fuel
so does this expenses considered as capital expenditure since the expenses is incurred to put the assets in ready to put to use

2- trial of newly purchased machinery is considered as capital expenditure??
Replies (4)
Quick Summary
This discussion clarifies what constitutes capital expenditure. Costs incurred to bring an asset, like a truck, to its intended working condition, including initial fuel and driver wages for delivery, are typically capitalised. However, trial runs of newly purchased machinery are generally considered operating expenses, expensed as incurred, as depreciation begins once the machinery is ready for use. The key is whether an expense is necessary to get the asset ready for its first use.

The truck and driver expenses plus fuel must be capitalised.

 Once you open the machinery package, depreciation starts based on the no. of days of usage. So trial expenses are operating expenses and must be expenses just like how daily operating expenses are expensed. 

The truck and driver expenses plus fuel must be capitalised.

 Once you open the machinery package, depreciation starts based on the no. of days of usage. So trial expenses are operating expenses and must be expenses just like how daily operating expenses are expensed. 

The truck and driver expenses plus fuel must be capitalised.

 Once you open the machinery package, depreciation starts based on the no. of days of usage. So trial expenses are operating expenses and must be expenses just like how daily operating expenses are expensed. 

I thought about the second point - bringing the asset to the location and condition necessary for it to be capable of operating. And condition means in good condition. Once you opened it all risks and rewards are transferred to you. If it doesn't work in the trial run which it must, return back the machinery. AS means pretty much the same. So condition cannot mean working condition when when we already know the meaning of asset. Otherwise, where is the economic benefit? So condition means, transporting and installing without damage. 

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