Revenue vs Capital expenditure

Accountancy

If the bike is modified to make it look unique or to just increase its beauty, then it should be revenue expenditure, right? As it does not enhance the value of the asset it cannot be considered as capital expenditure until and unless a powerful engine is installed to increase its overall life and performance. Video Details ------------- Accounting - CA Foundation (New) Capital And Revenue Expenditures and Receipts #1. Introduction to Capital Vs. Revenue Expenditure

Unnati Mittal

CA Foundation

★ 0

27-Jul-26 13:26

Answers (3)

Yes, you are right. Spending money to keep things looking good. It doesn't make the bike faster or last longer.

KURVA NARESH

CA Foundation

★ 45

27-Jul-26 16:39

You are correct. For an expenditure to be considered a capital expenditure, it must increase the asset's earning capacity, improve its efficiency, or extend its useful life

CA Suraj Lakhotia

Admin

28-Jul-26 11:06

Okay, Thank you sir

Thread Starter

Unnati Mittal

CA Foundation

★ 0

28-Jul-26 22:02