capital exp or revenue exp


article assistant

1 feet wall is constructed separating concrete floor and garden (muddy area). is it capital expenditure and to be shown as addition to building ?
 
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Practicing CA

if expenditure is high it should be capitalized as it adds to the life of building and is assumed to be consumed over the useful life of the related fixed asset


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you have not specified the amount incurred. since it's only a one feet wall it shud be expensed.
 
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