Capital v/s Revenue

This query is : Resolved 

19 November 2009 A company is required to purchase Hard Disk and RAM for its server computer. This purchase would necessarily increase the efficiency of the working of the Server.

Whether this expenditure should be capitalised or is to be treated as revenue expenditure?

19 November 2009 its a revenue expenditure

19 November 2009 i think its a capital expenditure




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