Expenditure incurred for the innovation of Guest house
building is revenue nature or capital nature ??
- 4 Answers
- 5971 Views
- Amazon, I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / hari.corporate
It is Revenue expenditure
Reason : A revenue expenditure is a cost that you charge to
expense as soon as you incur it.
| Is This Answer Correct ? | 4 Yes | 2 No |
Answer / babhu kanchupalli
It is a capital expenditure.....because what ever the cost incurred to obtain the fixed asset and the cost incurred to increase the useful life. of the asset.....is included in the value of an asset.
For example : when we purchase a bike....we have to incure some extra amount for extra fittings like.....seat covers,helmet,accident guards,tank cover....like that.....all these expenses includes under bike cost.....when some asks about the price of your bike....you simply says the amount which includes all these extra fittings amount.......
| Is This Answer Correct ? | 2 Yes | 0 No |
Answer / lalitha
Its a revenue nature,its not a construction of guest house,
innovation only
| Is This Answer Correct ? | 1 Yes | 1 No |
what do you consider to be the biggest challenge facing the accounting profession today?
if co. (proprietorship). purchase mobile phone for employees than mobile phones under off. equipment .we have rec. purchase bill gst applicable how shows entry
Bank Reconciliation
opening stock rs.6000 purchases rs.22000 cash sales rs.18000 credit sales rs.12000 calculate closing stock if rate of gross profit on cost of goods sold 25%.
3 Answers State Bank of Mysore SBM,
what is dog expenses ?
Please would you provide me with a defenition of Cycle count tolerance ? Thank you
hi What is entry when goods/material reced on 31st March but,invoice yet not received.
What is the difference between costing and cost accounting?
mr.atul purchased a dress for his son amounting to rs 725/- from dress point by paying cash from the office. We entered in this trasaction to which voucher?
What are trade bills?
Explain: Accrual Concept, Realisation Concept, Going Concern concept, Accounting period Concept
What is the last date of submitted of individual itr and Balance sheet, and company itr and balance sheet?
Audit 
