Revenue or Capital expenditure
This query is : Resolved
22 April 2009
If a company made some expenditure on making a new cabin in the companeies premises then what will be the nature of this expenditue capital or revenue????/
22 April 2009
If the cabin is made new and furnished first time, then it will be capitalised. Add fiuniture, AC etc. in their proper head for depreciation.
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22 April 2009
agree with expert
01 May 2009
Dear, the basic concept for capitalizing any expenditure or charging off to P & L Account, is whether the new assets has come in existence or not by incurring the expenditure. Your query clarifies that a new cabin has been erected with in the factory premises, it is a new assets, the expenditure incurred is capital in nature.
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