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State whether the following expenditure are Capital, Revenue or Deferred Revenue. Give reasons:(i) Furniture of the book value of ₹ 10,000 were sold off at ₹ 2,500 and new furniture of the value of ₹ 6,000 were acquired, cartage on purchase ₹ 50.(ii) Property purchased for ₹ 20,00,000 and ₹ 1,50,000 paid for its registration and legal fee.(iii) Replacement of old machine by a new one.(iv) Damages paid by a transport company to its passengers injured in an accident.(v) Erection of shed for parking of vehicles at a cost of ₹ 10 Lac. |
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Answer» State whether the following expenditure are Capital, Revenue or Deferred Revenue. Give reasons: (i) Furniture of the book value of ₹ 10,000 were sold off at ₹ 2,500 and new furniture of the value of ₹ 6,000 were acquired, cartage on purchase ₹ 50. (ii) Property purchased for ₹ 20,00,000 and ₹ 1,50,000 paid for its registration and legal fee. (iii) Replacement of old machine by a new one. (iv) Damages paid by a transport company to its passengers injured in an accident. (v) Erection of shed for parking of vehicles at a cost of ₹ 10 Lac. |
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