Capital and revenue expense

This query is : Resolved

PUNITA (Querist)
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08 May 2018 Whether the following are capital or revenue expenditure
i) Paint of name of the company on machine.
ii) Repairs made to replace bolts which had dislodged during transit.

RAJA P M

RAJA P M (Expert)
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09 May 2018 As per my view., It ll be account under Expenditure head.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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09 May 2018 By writing a name on the existing running Machine, no extra capacity or benefit as regards the use has been achieved. Its a Reveue Expenditure. But if the name has been painted before the machine is put to use - it has to be capitalised.
.
The replacement of bolts has been made prior to the machine is put to use and on this ground the said expenditure has to be capitalised.

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