The cost of the first renovation of the hotel-the project under construction should be carried over to the fixed assets, right? Two years later, the boss tore down the original decoration and renovate

The cost of the first renovation of the hotel-the project under construction should be carried over to the fixed assets, right? Two years later, the boss tore down the original decoration and renovated it. The cost of the first renovation of the hotel is under construction, should it be carried over to fixed assets?

Yes, but the detailed account of "Fixed Assets-Fixed Assets Decoration" should be set separately.

Borrow: fixed assets-fixed assets decoration

Loan: Construction in progress.

Two years later, the boss tore down the original decoration and renovated it. Which subject should I pay for the second decoration?

One, the last "fixed assets-fixed assets decoration" subject balance to zero.

Borrow: non-operating expenses

Borrow: Fixed Assets-Fixed Assets Update

Then the decoration fee will be recorded in the fixed assets-fixed assets renewal.

Borrow: fixed assets-fixed assets decoration

Loans: cash on hand/bank deposits/accounts payable (also carried forward through construction in progress)

According to the accounting system, if the fixed assets decoration expenses are capitalized, a fixed assets decoration account should be set up separately in the fixed assets account, and depreciation should be separately accrued by reasonable methods during the short period between two decoration periods and the service life of the fixed assets. If there is still a balance in the detailed subject of "Fixed Assets Decoration" related to fixed assets at the next renovation, the balance should be included in the current non-operating expenses at one time.