How to record the cost incurred in Tenant renovation of the place?

[samnew12u]

Our company leased a place and currently renovating the place, they consulted an interior design and also installed fire and safety things on the place. Do we capitalise on all the costs as capital expenditure? What would I classify it as under the Fixed Assets?

Also, I am using accounting software to record all the transactions, for the transaction that I just mentioned above, in the invoices it has listed out all the details by each row with each cost, should I enter it as it is in the invoice or can I just simply write as Fire and safety Installation and put the total amount?

 

[Praz Finpoint]

You would capitalize all the costs, including installation expenses, of the fire and safety equipment on the Balance Sheet

The classification is simply Office Equipment or Furniture & Fittings in Fixed Assets on Balance Sheet

Generally speaking, Companies would record each item on the Invoice as a separate Fixed Asset on the Balance Sheet for ease of annual Fixed Asset count and verification process.