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Capital and Revenue Expenditure please help me

Accountancy

Why Repairs to Bike is Revenue exp?? So example if I change the Engine then in such case of major repairs I can expect the engine to work or give economic benefits more then 1yrs then y cap exp

Dhakshana Dhakshana

CFA L2

★ 18K+

23-Sep-21 19:07

470

Answers (4)

Absolutely yes

Sriram Somayajula

Admin

23-Sep-21 19:30

So is it capital or Revenue Expenditure sir?

Thread Starter

Dhakshana Dhakshana

CFA L2

★ 18K+

23-Sep-21 19:36

If you change engine and it is benefit fit more than 1 Yr then it is capital expenditure

Miradevi S

CA Final

★ 16K+

23-Sep-21 19:50

Yes, it is a capital expenditure.

Kajal Gupta

CA Foundation

★ 2K+

23-Sep-21 22:26