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Question
Classify the following into capital expenditure and revenue expenditure.
Money spent on overhauling of office van.
Solution
Capital Expenditure
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RELATED QUESTIONS
Amount spent on increasing the seating capacity in a cinema hall is ______.
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. |
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