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Trial run expenditure, Accounting - Auditing

Issue Id: - 4117
Dated: 3-5-2012
By:- RAMPRABHU M

Trial run expenditure


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We have started production in may 11 but it took a month to stablise the production ie to the normal capacity .

Whether we can treat that one month expenditure as trail run and capitalise accordingly. pls advice 

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Page: 1


1 Dated: 5-5-2012
By:- manoj lalwani

Yes the expenditure incurred for trial run can be capitalised


Page: 1

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