Capital expenditure

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 April 2012 Which expenses need to be capitalized? We all know that when a computer is purchased it is a capital expenditure and not a revenue exp. But if we purchase a keyboard or a mouse, should it also be capitalized or can be booked as revenue exp. as it costs very less. What is the basis of treating any expenditure as revenue or capital? Please guide.

Guest

Guest (Expert)

26 April 2012 Keyboard and mouse are integral part of the computer and hence should be capitalised.