As we know if the assets which is used for more than 1 year is treated as fixed assets.
if there is invoice for renovation (access control) of rental office and total invoice value RS:30000 but in that invoice 20000 is used for access control mechinery so, it is fixed assets because it is used for more than 1 year and we can replace it. remaining 10000 is used for 5 different works for example wire works etc 500, 1000, 200, 300 respectively, which can be used for more than a year and can not replace them, so is that small amount which is there in fixed assets invoice is treated as capital expenditure or revenue expenditure. if yes, why...?
CAclubindia
