Question

Legal charges paid at the time of building purchase, which account is to be debited?​

Answer 1

Answer:

Capital Expenditures are for fixed assets, which are expected to be productive assets for a long period of time. Land is a productive asset and GAAP requires that it should be capitalized as an asset in Balance sheet and all the sums spent upto the point an asset is ready for use should also be treated as capital expenditure.