Capital & Revenue Expenditure

Accountancy

Inauguration expenses comes under capital expenditure or revenue expenditure?

Ratnasri N

CA Foundation

★ 0

10-Mar-22 16:33

506

Answers (3)

Revenue expenditure because its like advertisement and does increase capacity of building

Harshitha Kalidindi

CA Final

★ 51K+

10-Mar-22 18:44

Harshitha Kalidindi

Revenue expenditure because its like advertisement and does increase capacity of building

But as revenue expenses are usually recurring right? And this one is one time charge.

Thread Starter

Ratnasri N

CA Foundation

★ 0

10-Mar-22 20:35

Thread Starter

Ratnasri N

But as revenue expenses are usually recurring right? And this one is one time charge.

Yes if the expenditure adds value to the asset i.e will it extend life or increase returns only then Capex else even if one time then opex only

Sriram Somayajula

Admin

11-Mar-22 14:18