Determining Capital vs. Revenue Expenditure for Tools: Consider Enduring Benefit, Value, and Resale Potential. Tools Often Revenue.

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....Nature of expenditure - purchase of tools and spares - revenue or capital expenditure - The test of enduring benefit is not the only criteria for concluding an item to be revenue or capital in nature. The value of each of the items, resale value etc also warrants consideration - tools are to be treated as revenue in nature and eligible to be claimed as expenditure in the profit and loss account. - AT....