Question

Classify the following into capital expenditure,revenue expenditure,deferred revenue expenditure,capital receipt and revenue receipt:
(a) Rs. 30,000 received from sale of old machine.
(b) Advertisement expenditure in special advertisement drive.
(c) Damages paid by transport company to its passengers injured in an accident.
(d) Rs. 1,00,000 received from sale of stock.
(e) Replacement of old machinery by a new one.
(f) Rs. 10,000 received from a customer whose account was previously written off as bad.​

Answer 1

Answer:

(e) Replacement of old machinery by a new one

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