Chapter 1

If you don't get any value addition from that cost you have incurred in the fixes asset, then you have to treat it as an expenditure and charge it to profit and loss account.on the other hand If you get some additional benefit from such cost incurred to the fixed asset then it'll be added in the book value of the fixed asset means value of the asset will increase accordingly

Manoj Raj

CA Final

★ 12K+

11-Jun-22 18:34

Whenever ur spending money on fixed asset .u have to two options with you ..either charge to pandl or capitalise it with asset (add to value of asset) .wen there is any improvement or its efficiency is increasing ,u add to value of asset or otherwise u charge it to p and l .

Kiran Vijay

CA Final

★ 4K+

11-Jun-22 18:40

Tnx bro

Thread Starter

Sugam SM

CA Final

★ 9K+

11-Jun-22 19:01