Advertisements
Advertisements
Question
State with reason whether the following is Capital or Revenue Expenditure:
Brokerage paid for purchase of land.
Solution
Capital Expenditure
Reason:
The expense was incurred in relation to the purchase of a fixed asset.
APPEARS IN
RELATED QUESTIONS
Which of the following is a capital transaction?
Expenses incurred to repair a second-hand machine, purchase by the firm, to make it usable are treated under which expenditure?
Which of the following are Capital Expenditure, Revenue Expenditure and Deferred Revenue Expenditure?
Wages paid to workers for installation of machinery in the factory.
State whether the following is Capital, Revenue or Deferred Revenue Expenditure.
Cost of painting the new office building.
Classify the following into Capital, Revenue and Deferred Revenue Expenditures, reason for your answer.
₹ 15,000 paid for obtaining a mortgage.
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 sum of ₹ 40,000 was spent on a machine consisting of ₹ 30,000 for increasing its production capacity, ₹ 1,000 for repairs and ₹ 9000 for replacement of worn-out parts.
Classify the following:
Renewal fee for a lease of land.
Which of the following are Capital Expenditure, Revenue Expenditure and Deferred Revenue Expenditure?
Amount paid for acquiring goodwill.
Which of the following are Capital Expenditure, Revenue Expenditure and Deferred Revenue Expenditure?
Cost of rehabilitating the operating efficiency of a used property acquired by the company.
