Treatment on purchase of cups

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girish (Querist)
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16 January 2013 We have a hotel business and purchased cups and saucers worth 20 lacs (approx.)for the first time during the current financial year.

Whether the cost of purchase of cups and saucers is to be treated as CAPITAL EXPENDITURE or REVENUE EXPENDITURE?

Guest

Guest (Expert)

16 January 2013 It is to be treated as crockery and charged off to Profit & Loss A/c.

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