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Why is it revenue transaction? Y can't it be capital transaction
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Thread Starter
Meda JeevansaiBut it give benefit for long period na bro
Generally painting is treated as maintenance expenditure and are debited to p and l , painting may be required every year as well. However it can be capitalized if such expenditure is not done regularly and the amount of expense is material to the entity Since question has not mentioned anything about the nature of expense therefore assuming as maintenance expenditure
Abhishek Purohit
Generally painting is treated as maintenance expenditure and are debited to p and l , painting may be required every year as well. However it can be capitalized if such expenditure is not done regularly and the amount of expense is material to the entity Since question has not mentioned anything about the nature of expense therefore assuming as maintenance expenditure
How is carriage costs on replacement part revenue ?? Plss explain
Reetikaa R
How is carriage costs on replacement part revenue ?? Plss explain
If the replacement part meets definition of PPE (asset) then carriage cost would be capital expenditure and if it doesn't then it's revenue expenditure
Abhishek Purohit
If the replacement part meets definition of PPE (asset) then carriage cost would be capital expenditure and if it doesn't then it's revenue expenditure
In this question, y is replacement part considered as revenue exp .pls tell
Reetikaa R
In this question, y is replacement part considered as revenue exp .pls tell
Yeah me too have same doubt regarding that :)
Reetikaa R
In this question, y is replacement part considered as revenue exp .pls tell
Carriage cost relating to bringing a machinery to use are alone capitalised. Carriage cost on a replacement part cannot be capitalised
ruchi lahoti
Carriage cost relating to bringing a machinery to use are alone capitalised. Carriage cost on a replacement part cannot be capitalised
Replacement part alone is revenue ma'am??
Reetikaa R
Replacement part alone is revenue ma'am??
It depends on whether it leads to any improvement in efficiency. If so, it can be treated as Capital
ruchi lahoti
It depends on whether it leads to any improvement in efficiency. If so, it can be treated as Capital
If the ques is silent abt the efficiency ,it s assumed as REVENUE MA'AM
Reetikaa R
If the ques is silent abt the efficiency ,it s assumed as REVENUE MA'AM
Carriage cost of replacement part, yes.
ruchi lahoti
Carriage cost of replacement part, yes.
No ma'am I asked for replacement part alone . Eg a part of asset replaced ? Here is it revenue or cap ?? If ques s silent regarding improvement in efficiency, shall I take it as revenue only ma'am??