capitalised amounts are recognised as an asset and depreciated over the useful life of the asset, upon initial recognition the accounting entries are: Dr PPE XX and Cr Bank/Cash/Payables XX Expensed amounts, like you rightly called them expensed amounts are fully expensed as they do not meet the recognition criteria of IAS 16, the accounting entries are: Dr Expenses XX and Cr Bank/Cash/Payables XX when you say income i’m guessing you mean income gained in the day to day operations of the business; the entries are: Dr Cash/Bank/Receivables XX and Cr Revenue