Accounting of capital expenditure

T Krishna Kumar (Querist) 22 June 2009 This query is : Resolved
One of my friend spent amount for construction upstairs on property owned by his father. Kindly let me know the transaction treatment, whether my friend should treat the amount spent on construction upstairs as loan given to his father or not?

regards

KK Turaga

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A V Vishal (Expert) 22 June 2009
It is how your friend wants to treat it, he can treat it as a loan or also as a gift. It depends on his relations with his parents. Further, you have not stated why he wants to treat the same as loan.

Uma parameswaran (Expert) 25 June 2009
Your friend can treat it as a loan or gift as L friend told.All it is depends upon the existing relation ship and financial capacity of the parties.

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Accounting of capital expenditure

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