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Post Info TOPIC: Buildings Alterations - Capital or expense
cragar99


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Buildings Alterations - Capital or expense
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Hi

I do the books for a small business which has a turnover of only about £5k per month. They have recently spent about £2000 on putting in a new doorway in the office ( ie knocking through the wall) and about £300 on the planning app. Can either of these be capitalised?

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Merlion ABS


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I would say this is Capital. The reason being is that its an alteration to the actual structure of the building and may affect the value of the building.

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BackOfficeGroup


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I agree with Merlion. If it is a new thing like a new doorway then I would capitalise, but if repairing an old doorway then I would not.....bit of a minefield really.

P

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Rhianrach


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I would capitalise it as it is a fairly large sum compared to turnover and therefore a large expense to absorb in one go. (personally)

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Steve
Wella


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I also concur

Capitalise the total into something like a Property Improvements asset a/c

Bill

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cragar99


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Thanks everyone - especially for all agreeing!

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