Nature of expense incurred in planting plants in garden

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TTD, Tirupati has lots of gardens in which flowers are grown and sent to Lord Balaji for daily rituals. No other sale is made out of that garden. Garden dept in TTD is a cost centre. 

Now when new plants are planted in those gardens..what is the nature of expenditure? Whether it falls in capital or revenue?

What more types of expenditure will be of capital nature that can be used in gardens?

Please clarify in relevance to accounting standards.

 

Replies (1)

IF SALE MADE AND REVENUE EARNED THEN COST INCURRED WILL BE SHOWN AS REVENUE EXPENSES

ALL TOOLS PURCHASED FOR GARDENING WILL BE CAPITALISED


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