Audit Finalisation

Hi Friends ,

                     I am in the finalisation process of an educational institution

. They have debited a lot of expenditures on there building as building and maintainence a/c (Dir Exp) and under some other expense heads.          My query is that upto what limit can be treated as expenditure and above what limit should be capitalised ? What is the crieteria for that ?Is it related to amount or nature of expense?If yes what is the criteria Kindly help...

                                   Also please let me know the depreciation rates of Xerox machiene and Water Purifier.