cash expenditure >Rs.20000

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 April 2011 1.If a company or partnership firm incurred cash expenses such as Rs.500000/-.
Whether treated it revenue exp. or capital exp.?

2.How can a company or partnership firm treated the same capital expenditure?

KSB22

KSB22 (Expert)
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29 April 2011 It depends on the purpose of the expenditure

If amount is spend to acquire long term assets or on the repair and maintenance which increase the future benefit from existing asset then it should be capitalized.