what does those words means in point (iii)repairs charges of Rs.30000 stood capitalized in the building
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If the expenses improve the Earning capacity of the asset or value of the asset then the expenses made are to be capitalised rather than treating it as an expense..
In this case, Repairs charges 30000 stood capitalized in the building means the repairs amount already forms part of the building's figure
Amount is already included in that Prime amount
In this case, Repairs charges 30000 stood capitalized in the building means the repairs amount already forms part of the building's figure
Amount is already included in that Prime amount
pius3:
so we have to add or minus this amount to find average trading profit
no need to do anything because this is not a revenue expenditure
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