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प्रश्न
State with reason whether the following is Capital or Revenue Expenditure:
Cost of overhauling a second-hand machine.
उत्तर
Capital Expenditure
Reason:
It was used to make a capital asset ready for use.
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संबंधित प्रश्न
Match the Column I and Column II:
| Column - I | Column - II | ||
| (a) | Preliminary expenses of ₹ 5,000. | i | Capital Expenditure |
| (b) | Purchase of old machine for ₹ 9,500. | ii | Revenue Expenditure |
| (c) | Wage paid ₹ 1,500 for carriage for goods. | iii | Deferred Revenue Expenditure |
| (d) | Loan received from Banks ₹ 10,00,000. | iv | Capital Receipts |
Match the Column I and Column II:
| Column - I | Column - II | ||
| (a) | Sale of Assets | i | Capital Expenditure |
| (b) | Interest paid on loan | ii | Capital receipt |
| (c) | Purchased land | iii | Revenue expenditure |
| (d) | Interest received | iv | Revenue receipt |
Why is it necessary to differentiate between capital and revenue items in accounting?
______ expenditure is an expenditure benefiting the future period.
Any expenditure which is unreasonably heavy is capital expenditure.
State with reason whether the following is Capital or Revenue Expenditure:
Brokerage paid for purchase of land.
State, whether you would consider the following as Capital Expenditure or Revenue Expenditure.
Overhaul expenses of second hand typewriters purchased.
State, whether you would consider the following as Capital Expenditure or Revenue Expenditure.
Expenses incurred for obtaining a license for running cinema hall.
In the following case indicate the amount to be debited as Capital Expenditure and Revenue Expenditure:
₹ 5,000 paid as brokerage and ₹ 2,500 other expenses on issue of shares.
Classify the following into capital expenditure and revenue expenditure.
Money spent on overhauling of office van.
