Question

8. "Whether an expenditure is of revenue or capital nature, is a question of fact and must depend on the
circumstances of each case." Comment, giving appropriate examples.
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Answer 1

Explanation:

In actual practice there is a good deal of difference of opinion as to whether a particular payment is capital or revenue expenditure. Sometimes, the distinction between capital and revenue creates a considerable litigation. In many cases borderline between the two is very thin. However it is essential to distinguish revenue expenditure and capital expenditure to prepare correct financial statements so that they present true and fair value of the business.

Answer 2

8. "Whether an expenditure is of revenue or capital nature, is a question of fact and must depend on the

circumstances of each case." Comment, giving appropriate examples.

8. "Whether an expenditure is of revenue or capital nature, is a question of fact and must depend on the

circumstances of each case." Comment, giving appropriate examples.

8. "Whether an expenditure is of revenue or capital nature, is a question of fact and must depend on the

circumstances of each case." Comment, giving appropriate examples.

8. "Whether an expenditure is of revenue or capital nature, is a question of fact and must depend on the

circumstances of each case." Comment, giving appropriate examples.

8. "Whether an expenditure is of revenue or capital nature, is a question of fact and must depend on the

circumstances of each case." Comment, giving appropriate examples.