Which of these items will not be capitalized along with the Asset.

Installation charges

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Annual repair and maintenance

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Statutory levies

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Freight and insurance

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is D Annual repair and maintenance
Annual repair and maintenance are recurring expense therefore, it is a revenue expense.
Revenue Expenses are not capitalized.

Suggest Corrections

Similar questions

Q. Which of the following items are capitalized along with the purchase price of the fixed asset?

Q. Which method of depreciation is effective if repairs and maintenance cost of an asset increases as it grows old _________________.

In case of a long term asset, repair and maintenance expenses are expected to rise in later years than in earlier year. Which method is suitable for charging depreciation if the management does not want to increase burden on profits and loss account on account of depreciation and repair.

Q. On the basis of the information given below answer the following question.
In the year 2014-15 C Ltd. purchased a new machine and made the following payments in relation to it:

Particulars	Rs
Cost as per supplier's list Agreed discount Delivery charged Erection charges Annual maintenance charges Additional maintenance charges Additional component to increase capacity of machine Annual insurance premium	5,20,000 50,000 10,000 20,000 30,000 40,000 5,000

If depreciation is provided @ 10 % p.a, WDV depreciation for 3rd year will be:-

Q. On the basis of the information given below answer the following question.
In the year 2014-15 C Ltd. purchased a new machine and made the following payments in relation to it:-

Particulars	Rs
Cost as per supplier's list Agreed discount Delivery charged Erection charges Annual maintenance charges Additional maintenance charges Additional component to increase capacity of machine Annual insurance premium	5,20,000 50,000 10,000 20,000 30,000 40,000 5,000

If depreciation is provided @ 10 % p.a, SLM depreciation for 3rd year will be:-

Join BYJU'S Learning Program

Which of these items will not be capitalized along with the Asset.

The correct option is D Annual repair and maintenanceAnnual repair and maintenance are recurring expense therefore, it is a revenue expense.Revenue Expenses are not capitalized.

The correct option is D Annual repair and maintenance
Annual repair and maintenance are recurring expense therefore, it is a revenue expense.
Revenue Expenses are not capitalized.