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Meaning and scope

Sir in the 1st video of capital expenditure there is an example of bike modification around 3:40 sec. I feel this a revenue expenditure for wjich sir said it is a capital expenditure


Prasanth kumar Kamisetty

Prasanth kumar Kamisetty

CA Foundation

11K+

09-Jul-20

59

Answers (2)

Are you sure you are referring to "Meaning & Scope" module 1st video. There is no example of bike modification in that video. Capital expenditure is discussed in 1.3 module. The bike modification is generating benefit over multiple accounting years hence its capital expenditure. If such modification was a repair which will not extend life of the asset or which will not give benefit over more than one acounting period then it will be considered as revenue expenditure


sudha reddy

sudha reddy

Moderator

10-Jul-20

Sorry mam. It is 1st video in capital and revenue expenditure


Thread Starter

Prasanth kumar Kamisetty

Prasanth kumar Kamisetty

CA Foundation

11K+

10-Jul-20

All the Best
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