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Question
State, whether you would consider the following as Capital Expenditure or Revenue Expenditure.
Purchase of typewriter ribbons.
Solution
Revenue Expenditure
Reason:
It is a Revenue Expenditure since the funds were spent on the utilisation of an existing asset.
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RELATED QUESTIONS
______ expenditure is incurred for meeting day to day expenses of business and its benefit is exhausted within the current accounting year.
'Whether an expenditure is of revenue or capital nature, is a question of fact and must depend on the circumstances of each case." Comment, giving appropriate examples.
Any expenditure intended to benefit the current period is revenue expenditure.
State with reason whether the following is Capital or Revenue Expenditure:
Whitewashing of office premises.
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Classify the following into capital expenditure and revenue expenditure.
Insurance premium of office building.
