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प्रश्न
Give four examples of capital expenditure.
Give five examples of capital expenditure.
Give two examples of capital expenditure.
उत्तर
- Purchase of land, building, plant and machinery, equipments, furniture, loose tools, etc.
- Cost of addition, extension and improvements to existing fixed assets.
- Cost of overhauling second hand machines.
- Expenses incurred for putting an asset into a working condition.
- Cost of increasing or improving the earning capacity or installed capacity of the business.
- Cost of intangible assets such as goodwill.
- Expenses incurred in connection with the purchase of land or building such as fees paid to lawyer or registration fee.
Notes
Students should refer to the answer according to their questions.
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संबंधित प्रश्न
Expenses incurred for construction of a building are classified as ______.
Expenses incurred to repair a second-hand machine, purchase by the firm, to make it usable are treated under which expenditure?
Match the Column I and Column II:
| Column - I | Column - II | ||
| (a) | Capital Expenditure | i | Repairs costing ₹ 600 carried out on a boiler. |
| (b) | Revenue Expenditure | ii | Advertising expenses ₹ 25,000 incurred for launching a new product in the market. |
| (c) | Deferred Revenue Expenditure | iii | Interest received. |
| (d) | Revenue Receipts | iv | A sum of ₹ 15,000 spent on the overhauling of a second-hand delivery van. |
State whether the following is Capital, Revenue or Deferred Revenue Expenditure.
Cost of painting the new office building.
Classify the following into Capital, Revenue and Deferred Revenue Expenditures, reason for your answer.
Premium ₹ 8,000 given for a lease.
Cost of raising a loan.
State whether the following expense is Capital or Revenue.
Purchase of a computer for the office.
Classify the following into capital expenditure and revenue expenditure.
Wages paid for installation of a machine.
Classify the following:
Renewal fee for a lease of land.
Which of the following are Capital Expenditure, Revenue Expenditure and Deferred Revenue Expenditure?
Cost of rehabilitating the operating efficiency of a used property acquired by the company.
