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Former Member
Jul 18, 2008 at 11:23 AM

asset capitalisation will be done or not

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we had a refigerator in our compnay which was capitalised. we replaced its compressor for rs 5500. old compressor got scraped at a price of rs 1000.

what would be the treatment for compressor purchased?

will it be capitalised with rs 5500 or will it be capitalised with 5500-1000= rs 4400.

please guide how compressor would be capitalised?