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00:00Sir, in the end capitalization will be used. Good, you can read the rest also in capitalization.
00:30One question I think is what is capitalization?
01:30Capitalization is when a city or a province or a city or a city or a province or a city
01:40or a city or a province or a city or a city or a city or a city or a city or a city
01:50or a city or a city or a city or a city or a city or a city
02:00or a city or a city or a city or a city or a city or a city
02:10or a city or a city or a city or a city.
02:20Yes, tell me kids, is there any problem?
02:30Yes, how much is it?
02:33Is it done? Yes, tell me, have you read it?
02:36Have you read it, sir?
02:38Tell me.
02:40Have you read it, sir?
02:42If there is no problem, then who does capitalization?
02:45This is the problem.
02:47This is the problem.
02:49This is not a good problem, sir.
02:53Yes, tell me, does anyone know about capitalization?
02:57Who does capitalization?
03:02Who does capitalization?
03:15In English.
03:17No, I say it in simple words, as an example.
03:22You had to make this building, for this you first bought land.
03:27So, how much land did you buy?
03:30Land, for example, you bought, 1 crore rupees.
03:33So, now what will you do with it?
03:36Record it in your books.
03:38Any asset should be non-credited in your books.
03:42So, any asset whose life span is more than 1 year,
03:47we call it capitalization to record it in our books.
03:53What does capitalization mean?
03:55To record any asset in your books.
03:59But such an asset whose life span is more than 1 year,
04:02more non-credited assets.
04:04Then what did you do?
04:06You made the building.
04:07For building you bought the始, cement,
04:13asked the carpenter to get it,
04:16you bought the chamber.
04:19In many things, electrical work, everything was done,
04:23your expense was 5 crore.
04:25What will you say, that this building is our asset?
04:29So, what will you do with the building in your books?
04:31You will record it.
04:33So, you will collect all the cost of the building,
04:34So, what we will do is, that in our books, we will recognize all this.
04:39Like the electricity, we have already spent it on building cost.
04:41So, what we have done, we have also worked on the floor, we have also spent it on the
04:46building cost.
04:47Right friends?
04:48Like the doors, we have also put our efforts in building cost.
04:53So, what are we doing with all these costs?
04:56We are creating a share of our building costs.
04:59These expenses, we are not ignoring, we are not wasting them.
05:02So, we are making all the expenses of the building as part of the cost of the building
05:09so that we become able to later tell how much we spent on this building.
05:14So, all the expenses of the building, which we are making as part of the cost of the building
05:19so that we can record this building in our books, so what do we call all these processes?
05:24We call it capitalization.
05:26So, all the expenses related to terrioral asset cost, so these expenses we are making
05:31as part of asset cost, so what do we call these process?
05:36We call it capitalization.
05:39So, all these day-to-day expenses, revenue expenditures, and revenue expanditures, and
05:45we don't capitalize all these.
05:48We don't capitalize revenue expenditures.
05:51Since, these are daily expenses, and if we take them then the benefit is finished.
05:55day-to-day expenses are capitalized. Capital expenditure is capitalized. We have studied
06:02two expenses. Revenue expenditure and capital expenditure. What were revenue expenditure
06:07and capital expenditure? The day-to-day expenses, we do not capitalize them. But the long-term
06:12expenses, which we call capital expenditures, their effect is more than one year, so they
06:17have to be recorded. And we have also studied that as soon as capital expenditure is capitalized,
06:22capital expenditure is capitalized. What are the assets that are capitalized? Non-grant
06:27assets. So what will they do? They will record them as an asset in their book. So what is
06:32capitalized? That is capital expenditure. Revenue expenditure is capitalized. For this
06:37building, you have bought cleaning material. Tell me, will this expense be capitalized
06:42or not? Revenue expenditure is capitalized. Revenue expenditure is capitalized. Cleaning
06:47material, entertainment. But in this building, you have extended a room. It is a building
06:52expense, but what will you do with it? Capitalize it because the capacity and performance of
06:57the asset has increased a lot. So we capitalize the day-to-day expenses. Capitalization means
07:02recording a non-current asset or making some expense a part of the cost of a non-current
07:07asset and making it a part of its cost and recording it in my books. So in capitalization,
07:12those expenses come, what are their? Long-term benefits. When you record them, then over
07:19the life of the asset, you will depreciate it. Land is not depreciated. Building is depreciated.
07:37So this is a form of capitalism. If you have a non-current asset, you will depreciate the
07:44Good.
07:48Come, we have a kuch passu.
07:50Ha ha ha.
07:53Loti Nadir, is there anyone who has a problem?
07:55We have done heading number two,
07:56now we will move on to heading number three.
07:58There is a lot of discussion in this, right?
07:59Sir, in this example, there are six,
08:02sir, these wages, sir, these two.
08:04Six point?
08:05Sir, six or seven, sir, eight.
08:06Cash paid to employees for their wages.
08:09So, this is day-to-day expenditure.
08:10What is called monthly expenditure?
08:13Revenue expenditure.
08:15Wages paid by a building contractor
08:17to his own staff for construction of an office room.
08:44Non-current asset.
09:14Over the life of asset.
09:44Yes.
10:05Yes.
10:14U-P-S.
10:44Ha ha ha.
11:14Ha ha ha.
11:44Cost.
11:45What is it?
11:46Transportation cost.
12:14Ha ha ha.
12:44Carriage inverter.
13:14Ha ha ha.
13:44Ha ha ha.
14:14Ha ha ha.
14:44Ha ha ha.