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Question
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.
Solution
Capital ₹ 30,000, Revenue ₹ 10,000 (9,000 + 1000).
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RELATED QUESTIONS
Purchased a computer for office is which type of expenditure?
Match the Column I and Column II:
| Column - I | Column - II | ||
| (a) | Preliminary expenses of ₹ 5,000. | i | Capital Expenditure |
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| (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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