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Question
State with reason whether the following is Capital or Revenue Expenditure:
Cost of replacing the worn-out parts of a machinery.
Solution
Revenue Expenditure
Reason:
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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.
______ expenditure is incurred for meeting day to day expenses of business and its benefit is exhausted within the current accounting year.
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