A road construction contract was terminated after 50% of work finished and restarted after 2 years. In the 2 years time some maintenance expenses were incurred on the completed road. The maintenance expenses incurred on the completed road will be revenue expenditure or capital expenditure?
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Recognition of expenditure as revenue or capital expenditure
Replies (1)
Defferrd rev expndtre bcoz it will give benefit for 2 or 3 years only. So u can consider ad defferrd revenue expenditure or revenue rxpndtre bt not capital.
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