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What is capitalization of asset mean


Prasanth Kumar

Prasanth Kumar

CA Inter

13K+

20-Jul-20 17:06

678

Answers (1)

Capitalisation of assets means to record expenses incurred for assets in the balance sheet as an asset and not charge it as an expenses in profit and loss account. Generally expenses which are incurred at a time of installation of asset or upto the assets are first ready to use are capitalised.


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