Expenditure incurred by an hotelier on replacement of linen and carpets in his hotel. Such expenditure shall be considered as

Question

Quizplus · Accepted Answer

This expenditure is considered revenue expenditure because it relates to the regular maintenance and upkeep of the hotel, ensuring the business continues to operate efficiently. Replacing linen and carpets is part of the routine operational costs, not an investment in the business that will provide benefits over several years.

Expenditure Incurred by an Hotelier on Replacement of Linen and Carpets