Question

2. State whether the
following are Capital
Expenditure or Revenue
Expenditure: (a) Rs
50000 spent towards
addition to the plant. (b)
Second hand motor car
purchased for Rs
200000 and spent Rs
20000 for repairs
immediately. (c) Rs
10000 spent for
whitewashing the
factory building. (d)
Carriage of Rs 15000
spent on machine
purchase.*​

Answer 1

Answer:

a) capital expenditure.

b) capital expenditure 220000

c) revenue expenditure

d) capital expenditure

Explanation:

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