Hello Sir,
Is the following expense a revenue or capital expenditure
redecoration expenses to make shop more attractive
in the answer it is NOT added back to profit
Why is that so?
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Capital vs revenue expenditure
Sir I too am a little confused. As per the study text it's revenue expenditure, but I was just wondering that redecoration should in reality enhance the look of the shop(beyond maintenance), thus allowing the owner to augment his income. That way, it becomes an improvement/cap ex, which is disallowed.
So, could you just shed some light on this area.
hi aarti are you interested in studying in group
Hey jean. The thing is am more of a solitary learner, so I don't think I'll be able to join the group you sent me a link of. Thanks for the offer tho.
Good luck for your F6.
Decoration costs are a normal maintenance cost incurred and therefore a revenue cost as you have seen in the notes and I have stated in the lecture - that is the rule - once again until you become chancellor of the exchequer and can make the rules, what you think "should" be the rule is not the issue - learn the rules that exist and do not waste your time arguing that they should be different
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