Advertisements
Advertisements
Question
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.
Solution
Capital ₹ 20,100 (20,000 + 100), Revenue ₹ 5,000.
APPEARS IN
RELATED QUESTIONS
Expenditure incurred ₹ 20,000 for trial run of a newly installed machinery will be ______.
Pre-operative expenses are ______.
Which of the following is a capital transaction?
______ is an example of Capital Expenditure.
Match the Column I and Column II:
| Column - I | Column - II | ||
| (a) | Sale of Assets | i | Capital Expenditure |
| (b) | Interest paid on loan | ii | Capital receipt |
| (c) | Purchased land | iii | Revenue expenditure |
| (d) | Interest received | iv | Revenue receipt |
State with reason whether the following is Capital or Revenue Expenditure:
Brokerage paid for purchase of land.
Classify the following into Capital, Revenue and Deferred Revenue Expenditures, reason for your answer.
Temporary huts built at a cost of ₹ 3,000 for construction of factory buildings. The huts were demolished when the factory building was ready.
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.
Classify the following:
Amount paid to an engineer for installation of machinery.
Classify the following:
Cost of increasing the seating capacity in a cinema hall.
