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What are the cases when revenue expenditure becomes capital expenditure?

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Question added by Deleted user
Date Posted: 2015/02/26
VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

The major repairs for an asset that are ear-marked for sale or replacement will be treated as an expenditure of capital nature.

When expenses of revenue nature is spent on erection of new plant and machinery like wages , carriage inward , raw material used , or advertising of new product will be treated as capital expenditure :)

FITAH MOHAMED
by FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

When the goods are used as personal assets of the company for example

company selling cars

used a car for manager utility 

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