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Question
State whether the following statement is True or False with reasons.
Purchases of Sports Equipments is a Capital Expenditure.
Options
True
False
Solution
Purchases of Sports Equipments is a Capital Expenditure. - True.
Explanation:
Generally, the life span of sports equipment is more than one year, so the purchase of sports equipment is considered a capital expenditure.
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| Dr. | Receipts and payment Account for the year ended 31st March, 2019 |
Cr. | |
| Receipts | Amount ₹ | Payments | Amount ₹ |
| To Balance b/d: | By Salaries to: | ||
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Do you agree or disagree with the following statements:
All receipts are the items of revenue income.
