Capital and revenue expenditure

Accountancy

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

CA Inter

★ 2K+

28-Nov-20 18:07

1K+

Answers (3)

Capital.

CA 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??

Thread Starter

Ram Shete

CA Inter

★ 2K+

28-Nov-20 21:26

Thread Starter

Ram Shete

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.

CA Suraj Lakhotia

Admin

29-Nov-20 07:40