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Question
In the following case indicate the amount to be debited as Capital Expenditure and Revenue Expenditure:
A new machine is purchased for ₹ 25,000, ₹ 500 are spent on its carriage and ₹ 1,500 were paid as wages for its installation.
Solution
Capital ₹ 27,000 (25,000 + 500 + 1500).
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RELATED QUESTIONS
Which of the following type of expenses are included in capital expenditure?
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 |
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In the following case indicate the amount to be debited as Capital Expenditure and Revenue Expenditure:
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Classify the following into capital expenditure and revenue expenditure.
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