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Question
State with reason whether the following is Capital or Revenue Expenditure:
Cartage paid to bring a new machine to the factory.
Solution
Capital Expenditure
Reason:
It occurs before the utilisation of a new fixed asset.
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RELATED QUESTIONS
Amount spent on increasing the seating capacity in a cinema hall is ______.
Expenditure incurred ₹ 20,000 for trial run of a newly installed machinery will be ______.
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