capital exp. booked as revenue & Revenue booked as capital expenditure
pankaj
(Querist) 30 June 2011
This query is : Resolved
dear sir,
i m article assistant under chartered accountant. i want to know from u as a guide & guru whether these expenditure should be capitalized or not which have been enclosed in excel sheet s i have discussed with management & they give thier opinion but i m not satisfied with thier answers. sir, can u tell me what should be real picture. company is manufacturing side cover, sheet cover of bike & Cars. it use raw material plastic dana to convert it into finished goods. sir i m sending u sheet in which company's opinion is also given. plz send it to me back after giving your opinion on this sheet. my email id is pankajmudgalca@gmail.com
c n vittal rao
(Expert) 01 July 2011
disticntion between capital and revenue expenditure vary with situations nature of buisnesse and the objet for which companys are setup no one final word can be said on the mater unless it comes up specifically before a competent forum
pankaj
(Querist) 01 July 2011
sir, i have to ask pipe 50mm (QTY-50)is used in existing plant & Machinery amounted to Rs. 73588. whether should i capitalize or not. these are not consumed within a year.
