HIIIIIII,
If we purchased 50 tube lights for our company it will be treated as capital expenditure.But if we replaced 10 out of them due to fuse then it will be treated as a capital exp. or revenue exp.?????
Because, according to the definition the exp. will be capitalised only when it will increased the productivity or reducing the cost of production.
plz helppppppppp
thnx in advance
i think it is revenue in nature or if you want to shown as capital expenditure then less in the cost of purchase and give suitable note
and also you will replaced them not return so the new cost of 10 tubelights will set off the amount.
Abic and Mani Chartered Accountants
Kottayam
B.Com
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Fytomax Nutrition Private Limited
Aurangabad
CA Inter
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Malhotra Rajesh & Associates
New Delhi
B.Com
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CCI
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