3924 Points
Joined December 2017
1) If office Building is old then you have expense out Roof Ceiling expense so entry will be
Roof Ceiling Expense A/c Dr 175000/-
To Trade Creditors A/c Cr 175000/-
( Booking of roof ceiling expense )
expense will be under indirect expense Profit & Loss Account
When you make payment
Trade Creditors A/c Dr 175000/-
To Bank A/c Cr 175000/-
( Payment of an expense )
2) If office Building is new then you have to add roof ceiling expense in cost of an Asset
( Cost of an asset + Roof ceiling expense ) = Total value of an asset
Entry will be
Asset A/c Dr
To Trade Creditors A/c Cr
( purchase of an Asset )
payment entry
Trade Creditors A/c Dr
To Bank A/c Cr
( Payment made )
please reply your office Building is new or old ?.