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Capital or Revenue expenditure

Amount spent to reduce working expenditure Is this capital or Revenue expenditure???


Gowshika LT

Gowshika LT

CA Inter

30K+

02-Aug-20 08:49

47

Answers (10)

What is working expenditure?


Sriram Somayajula

Sriram Somayajula

Admin

02-Aug-20 15:41

This is what given in the question

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Gowshika LT

Gowshika LT

CA Inter

30K+

02-Aug-20 17:59

It would generate long term benefits to the company. Hence, it is capital expenditure.


Lavanya Chitturi

Lavanya Chitturi

Moderator

02-Aug-20 22:31

How will you assume That it will generate long term benefits ???It is not mentioned in the question


Gowshika LT

Gowshika LT

CA Inter

30K+

03-Aug-20 06:40

Reduction in working expenses is not one time.


Suraj Lakhotia

Suraj Lakhotia

Admin

03-Aug-20 08:31

It is a revenue expenditure. It also given in rtp by icau


Jay Khunt

Jay Khunt

CA Foundation

4K+

12-Aug-20 19:15

Icai*


Jay Khunt

Jay Khunt

CA Foundation

4K+

12-Aug-20 19:15

Jay Khunt

Icai*

Assume, a company built an automation system. This will reduce working expense (for more than one period). Hence capital expenditure.


Suraj Lakhotia

Suraj Lakhotia

Admin

12-Aug-20 19:17

Suraj Lakhotia Admin

Assume, a company built an automation system. This will reduce working expense (for more than one period). Hence capital expenditure.

But as per icai same qus. Given in mtp aug. 20 specified that it is a revenue expenditure


Jay Khunt

Jay Khunt

CA Foundation

4K+

12-Aug-20 19:21

Jay Khunt

But as per icai same qus. Given in mtp aug. 20 specified that it is a revenue expenditure

Where is MTP for Aug-20? I could find only MTP for May-20.


Suraj Lakhotia

Suraj Lakhotia

Admin

12-Aug-20 19:34

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