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प्रश्न
Expenses incurred to repair a second-hand machine, purchase by the firm, to make it usable are treated under which expenditure?
पर्याय
Revenue
Capital
Deferred revenue
Capital loss
उत्तर
Capital
Explanation:
Expenditure incurred for the extension of or improvement in fixed assets is also capital expenditure. Such expenditure e.g. over hauling of second hand machinery, etc. helps to increase the profit earning, capacity of business by increasing output or reducing costs.
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संबंधित प्रश्न
Which of the following type of expenses are included in capital 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. |
Why is it necessary to differentiate between capital and revenue items in accounting?
Which of the following are Capital Expenditure, Revenue Expenditure and Deferred Revenue Expenditure?
Wages paid to workers for installation of machinery in the factory.
Classify the following into Capital, Revenue and Deferred Revenue Expenditures, reason for your answer.
₹ 15,000 paid for obtaining a mortgage.
Classify the following into Capital, Revenue and Deferred Revenue Expenditures, reason for your answer.
Wage paid for extension of office premises.
State whether the following expense is Capital or Revenue.
Purchase of a computer for the office.
State, whether you would consider the following as Capital Expenditure or Revenue Expenditure.
Cost of director's trip abroad for purchase of a new plant.
Which of the following are Capital Expenditure, Revenue Expenditure and Deferred Revenue Expenditure?
Cost of painting the name of the company and other advertisement message on a newly purchased delivery van.
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.
