Mr.A is going to Singapore to buy a specific machinery for his manufacturing company.
spending around 2 lakhs towards staying food and travelling expenses.
can he add this money to the asset cost as the trip was soley for the purpose of purchasing dat asset .
how to treat this expenses ?
what are the accounting entries for the same ?
kindly teach
Anand Narayan Krishnan
98409 21545
Of course, expenses incurred towards purchase of machinery should be allocated to the machinery and subject to TDS. All expenses of any kind (non reimbursable/ refundable) incurred towards purchase/ installation of machinery, charge to machinery account .
Expenses to be add to cost of machinery and should be capitalized..
CAclubindia
