Capital or Revenue expenditure

What is working expenditure?

Sriram Somayajula

Admin

02-Aug-20 15:41

This is what given in the question

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Thread Starter

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

CA Inter

★ 895

02-Aug-20 22:31

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

Thread Starter

Gowshika LT

CA Inter

★ 30K+

03-Aug-20 06:40

Reduction in working expenses is not one time.

Suraj Lakhotia

Admin

03-Aug-20 08:31

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

Jay Khunt

CA Foundation

★ 4K+

12-Aug-20 19:15

Icai*

Jay Khunt

CA Foundation

★ 4K+

12-Aug-20 19:15

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

Suraj Lakhotia

Admin

12-Aug-20 19:17

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

Jay Khunt

CA Foundation

★ 4K+

12-Aug-20 19:21

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

Suraj Lakhotia

Admin

12-Aug-20 19:34