Sir,
A private Ltd company has a Car, The company Purchased New Battery for the Car amounting Rs 6000/- as battery is new it will increase the life of Car, will it be capitalised or treated as under expense
I am confused on other hand, next question raised in my mind that, Car is Shown under fixed asset and suppose, if we replace any part of car we show under expense for e.g just like Machinery,if any repairs to machinery i.e replacing the parts of the machinery which are required to run and work the machinery is to be treated as expenditure.
pls clear the confusion
In accounting, whether a new car battery should be capitalized or expensed depends on its impact on the asset’s life. Typically, if it significantly extends the car’s useful life, it may be capitalized; routine replacements are usually expensed, similar to machinery parts. Your analogy with machinery maintenance is accurate—repair or part replacement costs necessary for normal operation are generally treated as expenses. For companies managing vehicle fleets or seeking replacement vehicles, platforms like https://www.autobidmaster.com/en/locations/usa/louisiana/flood-damage/ offer a convenient way to acquire bank and donation vehicles at competitive prices, making fleet upgrades or expansions much easier and cost-efficient.
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