Register now or log in to join your professional community.
Many Thanks for invitation
In order to answer this question let's first understand what exactly is capital expenditure,
all the expenses, the benefit of which lasts more than a year is called capital expenditure,
like paid for purchase of Building, Machinery etc., Capital WIP means amount paid for
an asset but still asset is not ready to use and more time and funds need to make it usable
but by the time the date of balance sheet falls in such case the amount paid for asset is
taken under Capital WIP under assets, and when all amount is paid and asset become ready to use then we can treat it as normal asset.
