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InterviewSolution
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State with reasons whether the following are capital or revenue expenditures:(i) A new machine is purchased for ₹ 60,000, ₹ 800 were spent on its carriage and ₹ 1,500 were paid as wages for its installation.(ii) A sum of ₹ 10,000 was spent on painting the new factory.(iii) ₹ 5,000 paid for the erection of a new machine.(iv) ₹ 2,000 were spent on repairs before using a second hand generator purchased recently.(v) ₹ 1,500 were spent on the repair of a machinery.(vi) ₹ 10,000 was paid as brokerage on issue of shares and other expenses of issue were ₹ 25,000. |
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Answer» State with reasons whether the following are capital or revenue expenditures: (i) A new machine is purchased for ₹ 60,000, ₹ 800 were spent on its carriage and ₹ 1,500 were paid as wages for its installation. (ii) A sum of ₹ 10,000 was spent on painting the new factory. (iii) ₹ 5,000 paid for the erection of a new machine. (iv) ₹ 2,000 were spent on repairs before using a second hand generator purchased recently. (v) ₹ 1,500 were spent on the repair of a machinery. (vi) ₹ 10,000 was paid as brokerage on issue of shares and other expenses of issue were ₹ 25,000. |
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