Question

Purchase of stationery is a ________ expenditure.

(a) capital
(b) revenue
(c) long term
(d) deferred revenue

Answer 1

Purchase of stationery is a revenue expenditure.

 

Explanation: Stationery is treated as consumable good, as it is used up during the year. The amount of stationery consumed during the year should be debited to Income and Expenditure Account. It is a type of revenue expenditure.

The amount consumed is calculated as Opening stock
Add: Purchases made during the year
Less: Closing stock