On 30th June. 2025, Cash Book of Mr. Gaurav (Bank Column of Account No. 1) shows a Bank Overdraft of 1,97,400. On going through the Bank Pass book…

(a) Cost of Property, Plant and Equipment comprises: (a) its purchase price, including non-refundable import duties and purchase taxes, after deducting trade discounts and rebates. (b) any cost directly attributable to bring the asset to the location and condition necessary for it to be capable of operating in a manner intended by the enterprise. (c) the initial estimate of the costs of dismantling, removing, the item and restoring the site on which an asset is located. Examples of directly attributable costs are: (a) cost of employee benefits arising directly from acquisition or construction of an item of property, plant and equipment. (b) cost of site preparation (c) initial delivery and handling costs (d) installation and assembly costs (e) cost of testing whether the asset is functioning properly, after deducting the net proceeds from selling the items produced while testing (such as samples produced while testing) (f) professional fees e.g. engineers hired for helping in installation of a machine Thus, all the expenses which are necessary for the asset to bring it in condition and location of desired use will become part of cost of the asset. However, following expenses should not become part of cost of asset: (a) costs of opening new facility or business, such as inauguration costs; (b) cost of introducing new product or service (for example cost of advertisement or promotional activities). (c) cost of conducting business in a new location or with a new class of customer (including cost of staff training); and (d) administration and other general overhead costs.