Question

Q 11: Pulling out an old structure Rs. 750 and
rebuilding it Rs. 10,500.
Deferred revenue expenditure
Capital Receipt
Revenue expenditure
Capital expenditure
12. Fach installment including down​

Answer 1

Explanation:

If accountant treat revenue expenditure as capital expenditure, then following effects took place in financial statements: Effect in Income Statement: Due to understatement of revenue expenditure, net profit will be overstated.

Answer 2

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