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?
Whether treated it revenue exp. or capital exp.?
2.How can a company or partnership firm treated the same capital expenditure?
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.
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.
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