Explain what is capitalization of Fixed Assets?
Submitted by: Administrator
If a company purchase plant & machinery for its factory use by investing large amount of money and assume that expected life of P&M is 10 years and which generates revenve for the company more one financial year. Hence this investment cannot be treated expenses for one Financial year therefore same to be kept as fixed asset under P&M head and depricaication will be charged every year based on applicable % & transferred to profit and loss a/c.
Submitted by: Administrator
Read Online Fixed Assets Job Interview Questions And Answers
