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Whether inventory or Repairs & Maintenance Plant and machinery

01 September 2020

repairing charges of Die Rs. 1,00,000/- for machinery, which use in production. whether exp debit as Repairing and Maintenance Plant and machinery or consumable or ?

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Rama chary Rachakonda (Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294) (4157 Points)
Replied 01 September 2020

Whereas the initial purchase and installation costs would be classified as capital expenditure, any subsequent repair and maintenance charges incurred in the future will be classified as revenue expenditure.All revenue expenditures comes in profit or loss account debit side.