Question
Transactions Amount Treatment Remark Machine purchase $500000 Capitalise Machine comes under fixed asset head, and always capitalise Ordinary Repair $500 Expense Ordinary repair doesnt increase
Transactions Amount Treatment Remark Machine purchase $500000 Capitalise Machine comes under fixed asset head, and always capitalise Ordinary Repair $500 Expense Ordinary repair doesnt increase book value of asset Patent $45000 Capitalise Intangible asset is always capitalised Addition to existing building $200000 Capitalise Increasing book value of building Monthly Salary $60000 Expense General expense Routine maintenance on equipment $250 Expense Routine maintenance doesnt increase book value of asset Extraordinary Repair $10000 Capitalise Extraordinary Repair increase book value of asset, so capitalise Total Capitalise - $ 7,55,000 Total expense - $ 60,750
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