Why repairs to car have been treated as revenue expenditure?? Couldn't it be capital expenditure, if no why? Please explain.
Dear student
Your question appears to be incomplete. Please check it. Although I am providing you with the possible explanation, if you still have any doubt please get back to us.
Repairs to car is considered as revenue expenditure because this expenditure doesn't increase the value of car. Also it doesn't extends its useful life. This expense is done so that the car works nicely. And thus it is recorded on expense side in income statement.
I hope it helps you.
Regards
Your question appears to be incomplete. Please check it. Although I am providing you with the possible explanation, if you still have any doubt please get back to us.
Repairs to car is considered as revenue expenditure because this expenditure doesn't increase the value of car. Also it doesn't extends its useful life. This expense is done so that the car works nicely. And thus it is recorded on expense side in income statement.
I hope it helps you.
Regards