Advertisements
Advertisements
Question
Classify the following:
Cost of converting a petrol engine into a diesel engine.
Options
Capital Expenditure
Revenue Expenditure
Deferred Revenue Expenditure
Solution
Capital Expenditure
APPEARS IN
RELATED QUESTIONS
Which of the following is a capital transaction?
Any expenditure which is unreasonably heavy is capital expenditure.
Classify the following into Capital, Revenue and Deferred Revenue Expenditures, reason for your answer.
Replacement of old machine by a new one.
State, whether you would consider the following as Capital Expenditure or Revenue Expenditure.
Overhaul expenses of second hand typewriters purchased.
Classify the following into Capital and Revenue Expenditure.
Wages paid to workers for installation of machinery in the factory.
In the following case indicate the amount to be debited as Capital Expenditure and Revenue Expenditure:
A sum of ₹ 40,000 was spent on a machine consisting of ₹ 30,000 for increasing its production capacity, ₹ 1,000 for repairs and ₹ 9000 for replacement of worn-out parts.
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.
In the following case indicate the amount to be debited as Capital Expenditure and Revenue Expenditure:
Furniture of the book value of ₹ 15,000 was sold off at ₹ 10,000. New furniture was purchased for ₹ 20,000 and ₹ 100 was paid as cartage on it.
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.
Classify the following into capital expenditure and revenue expenditure.
Money spent on overhauling of office van.
