If a machine is producing 10000 units due to sudden defect in the machine in a particular month with a standard set at 16000 units/month, any expenditure done on such machine which increases the production to 14000 units/month.
What should be the classification of such expenditure? Capital OR Revenue expenditure.
Also, the producing capacity of the machine when it was purchased was 20000 units/month.
Thanks in advance,
Anshuman Prasad
CAclubindia
