QUESTION 166 You are required to give the correct accounting treatment for the following in line with provisions of AS 1

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Question 166 You Are Required To Give The Correct Accounting Treatment For The Following In Line With Provisions Of As 1 1 (71.14 KiB) Viewed 30 times

QUESTION 166 You are required to give the correct accounting treatment for the following in line with provisions of AS 10: (a) Trozen Ltd. operates a major chain of supermarkets all over India. It acquires a new store in Pune which requires significant renovation expenditure. It is expected that the renovations will be done in 2 months during which the store will be closed. The budget for this period, including expenditure related to construction and remodelling costs (* 18 lakhs), salaries of staff (* 2 lakhs) who will be preparing the store before its opening and related utilities costs (< 1.5 lakhs), is prepared. The cost of salaries of the staff and utilities are operating expenditures that would be incurred even after the opening of the supermarket. What will the treatment of all these expenditures in the books of accounts?