IS IT Revenue Exp.???

here replacement of 10 bulbs means ... the 10 bulbs or not working

it is very simple

it is revenue expenditure

any expenses made is Revenue exp ...I mean to repairs(not first time when the time of buying), to reduce working  expenses etc all are reven exp

 

yea adula is right............

here you have mistaken.....expenditure made so as to increase its productive capiacity is cap exp

but the exp made to reduce the expenses in business is rev exp

simple shortcut method:

all maintainence are revenue exp others cap exp

 

 revenue expenditure

it will be a capital exp.

reason:when u bought the bulbs they wud not be lasting forever...u hav to replace them...and the replcaced bulbs r new ones so their life is longer than the bulbs u hav replaced...understand here that replace and repair r two different words....when u repair an asset u do that to maintain its working life...but u replace an asset whn its working life is over and the replaced asset provides greater benefit......hence it is capital exp....

hello finich

u r wrong

the assets which is concerned with ur business and if it is increasing the production then only its capital exp

but if you are saving some thing or avoiding some expenses it comes to reven exp

ok...so consider a firm which offers the chairman a car as a perquisite...now this car has no relevance to the business of he firm but it is still recorded as an asset in the firm's books and u still provide depn on it...if u repair tis car u treat it as a revenue expense but if u replace it u will consider that as a capital exp isnt it?...so why shud this logic be not applied to tubelights ..just cos they r lower in value?

Originally posted by :adula.....
"	hello finich u r wrong the assets which is concerned with ur business and if it is increasing the production then only its capital exp but if you are saving some thing or avoiding some expenses it comes to reven exp	"