Trial run expense & sales

Originally posted by : AMIT KUMAR
	Hi, Please  anyone answer my query and thanks in advance....... How  to present TRIAL Run Purchases and Sales in books of Accounts. This purchases and Sales are booked same as another sales & purchases are booked. Thanks & Regards Amit Kumar 9650698333

As per AS-10, "Accounting for Fixed Assets", trial run expenses will be added to the cost price of asset and any sale proceeds of trial run production will de deducted from the cost price of the asset.

when we talk about trial run expenses thge expenses should be written off over aperiod of time(normally 5years),if we make any sales out of it the sale proceadings normally deducted from trail run expenses and we have to show balance in balance sheet and if make profit out of that that shoiuld be transffered to general reserves.