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.
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.
CAclubindia
