overhauling

In case of overhauling will we treat that as a separate component so capitalise and depreciate it until next overhaul.

So if overhauling expense is 30000 after every 3 yrs

Asset Dr 30000
Cash Cr 30000

then we record depreciation of it for next 3 yrs

Dr Depreciation 10000
Cr Accumulated dep. 10000

At the end of 3 yrs when again overhauling gonna happen…….we derecognise the previous overhauling one by

Dr Accumulated dep 30000
Cr Asset 30000

and capitalize the next overhaul expense again.

Am i right sir?