capital&revenue

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Querist : Anonymous

Querist : Anonymous (Querist)

06 September 2010 if repairs cost is 25000, whitewash expenses are 5000,cost of extension of building is 250000, &cost of improvement in electrical wiring system is 19000 the amount to be expended is how much?reason.

SANJAY TALATI

SANJAY TALATI (Expert)
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06 September 2010 Can u please provide the details of the dates of purchase of Builing and the incurring of the exp.

Querist : Anonymous

Querist : Anonymous (Querist)

07 September 2010 sorry.it is icai question they gave answer as Rs30000.I didn't understand how it comes.

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SANJAY TALATI

SANJAY TALATI (Expert)
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07 September 2010 The Question is not clear. However, it seems that the Cost of Extention and the Electrical Installation gives the enduring benefit , it will be capitalized. While the white wash and repairs cost are considered as revenue exp.

Querist : Anonymous

Querist : Anonymous (Querist)

07 September 2010 it is from capital& revenue expenditure chapter. in CPT level