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Question
State, whether you would consider the following as Capital Expenditure or Revenue Expenditure.
Repairs of typewriters.
Solution
Revenue Expenditure
Reason:
Revenue Expenditure refers to the cost of maintaining an existing asset.
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RELATED QUESTIONS
Fixed assets lose part of their value every year due to wear and tear with passage of time, such reduction is called ______ on fixed assets.
Explain the rules for deciding whether an expenditure is of revenue nature.
Any expenditure intended to benefit the current period is revenue expenditure.
Any expenditure incurred to reduce the operating expenses is revenue expenditure.
State with reason whether the following is Capital or Revenue Expenditure:
Cost of repairing machinery.
State with reason whether the following is Capital or Revenue Expenditure:
Cost of replacing the worn-out parts of a machinery.
Classify the following into Capital, Revenue and Deferred Revenue Expenditures, reason for your answer.
₹ 20,000 spent on dismantling, removing and reinstalling plant and machinery.
Give five examples of revenue expenditure.
Which of the following are Capital Expenditure, Revenue Expenditure and Deferred Revenue Expenditure?
Wages, salaries and rent outstanding.
Which of the following are Capital Expenditure, Revenue Expenditure and Deferred Revenue Expenditure?
Depreciation on fixed assets.
