Dear Sir/ Ma'am,
Please clarify the following,
I have purchased a new shop and I have done expenditure for Renowation, Furniture etc. Then these expenditure will capitalised with cost of shop or will show as expenditure??
Riddhi Maheshwari (Student CA Final ) (48 Points)
05 June 2014Dear Sir/ Ma'am,
Please clarify the following,
I have purchased a new shop and I have done expenditure for Renowation, Furniture etc. Then these expenditure will capitalised with cost of shop or will show as expenditure??
Tribhuvan Aditya Singh
(Student as well as Self-employed)
(3710 Points)
Replied 05 June 2014
Udit
(Practice)
(25 Points)
Replied 07 June 2014
If it is an expenditure incurred which is of reccuring nature, just to keep business going, then it is a revenue expenditure....If it is a one time expenditure which going to yield benefits over a period of time, then capitalise it.
CAclubindia
