capital&revenue

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Querist : Anonymous

Querist : Anonymous (Querist)

06 September 2010 if repairs cost is 25000, whitewash expenses are 5000,cost of extension of building is 250000, &cost of improvement in electrical wiring system is 19000 the amount to be expended is how much?reason.

SANJAY TALATI

SANJAY TALATI (Expert)

06 September 2010 Can u please provide the details of the dates of purchase of Builing and the incurring of the exp.

Querist : Anonymous

Querist : Anonymous (Querist)

07 September 2010 sorry.it is icai question they gave answer as Rs30000.I didn't understand how it comes.

SANJAY TALATI

SANJAY TALATI (Expert)

07 September 2010 The Question is not clear. However, it seems that the Cost of Extention and the Electrical Installation gives the enduring benefit , it will be capitalized. While the white wash and repairs cost are considered as revenue exp.

Querist : Anonymous

Querist : Anonymous (Querist)

07 September 2010 it is from capital& revenue expenditure chapter. in CPT level

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