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Capital and revenue expenditure

Amount spent on making few more exits in a cinema hall to comply with government orders which expenditure is this capital or revenue? how?


Ram Shete

Ram Shete

CA Inter

2K+

28-Nov-20 18:07

8

Answers (3)

Capital.


Suraj Lakhotia

Suraj Lakhotia

Admin

28-Nov-20 18:19

Why sir ??I am confused ...also it doesn't increases our earning capacity.It is given as revenue expenditure in answer sheet??


Ram Shete

Ram Shete

CA Inter

2K+

28-Nov-20 21:26

Why sir ??I am confused ...also it doesn't increases our earning capacity.It is given as revenue expenditure in answer sheet??

You will not be able to earn if you do not comply with govt orders.


Suraj Lakhotia

Suraj Lakhotia

Admin

29-Nov-20 07:40