Logistics
Major Engine Overhaul (Capitalization)
Recording a significant engine rebuild that extends the truck's life by 5 years.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Vehicles (Fleet Asset) | Asset (+) | 8,000.00 | - |
| Cash / Bank | Asset (-) | - | 8,000.00 |
💡 Accountant's Note
Routine oil changes are expensed. But a rebuild that restores the asset's utility is capitalized under IAS 16 and depreciated.
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