04 June 2016
if repair cost is 25000 rupees white wash expenses are 5000 rupees cost of extension of building is 250000 rupees and cost of improvement in electrical wiring system is 19000 Rupees the amount to be expensed is ?
05 June 2016
The answer is from INCOME TAX point of view and not ACCOUNTANCY. under Income Tax, if enduring benefits are not received by spending the amount, the same may be treated as REVENUE expenditure. Cost of extension of building would go to Capital Expenditure and the rest would be Revenue expenditure
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