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Question
State whether the following is Capital, Revenue or Deferred Revenue Expenditure.
Cost of painting the new office building.
Solution
Capital Expenditure
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RELATED QUESTIONS
Amount spent on increasing the seating capacity in a cinema hall is ______.
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. |
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 |
Expenditure incurred to ______ the asset is capital expenditure.
Classify the following into Capital, Revenue and Deferred Revenue Expenditures, reason for your answer.
Premium ₹ 8,000 given for a lease.
Classify the following into Capital, Revenue and Deferred Revenue Expenditures, reason for your answer.
Replacement of old machine by a new one.
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:
₹ 5,000 paid as brokerage and ₹ 2,500 other expenses on issue of shares.
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.
Which of the following are Capital Expenditure, Revenue Expenditure and Deferred Revenue Expenditure?
Amount paid for acquiring goodwill.
