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Question
State whether the following expense is Capital or Revenue.
Charges paid for registration of a trade mark.
Solution
Capital Expenditure
Reason:
In the process of obtaining an intangible asset.
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RELATED QUESTIONS
Expenditures incurred to acquire fixed assets are called ______.
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 |
Define Capital expenditure.
State whether the following is Capital, Revenue or Deferred Revenue Expenditure.
Repairs to a second-hand motor van purchased.
State whether the following is Capital, Revenue or Deferred Revenue Expenditure.
Cartage paid on purchase of furniture.
State, whether you would consider the following as Capital Expenditure or Revenue Expenditure.
Overhaul expenses of second hand typewriters purchased.
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.
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.
Classify the following:
Amount paid to an engineer for installation of machinery.
Which of the following are Capital Expenditure, Revenue Expenditure and Deferred Revenue Expenditure?
Amount paid by a publisher for acquiring copyright.
