Question
• Bharat gas agency paid the
following expenditure during the year
2020-21 Wages Rs. 50,000 Purchase of
building Rs. 1,00,000 Purchase of
office furniture Rs. 60,000 Salary Rs.
60,000 Petrol charges Rs. 20,000
Calculate the amount of capital
expenditure during the year
Answer
A.
B.
Rs. 50,000
Rs. 1,60,000
Rs. 1,00,000
Rs. 2,70,000
C.
D.
Answers
Answer:
B. Rs. 1,60,000
Explanation:
Capital expenditure means a expenditure over a fixed assets.
In this case, Purchase of building & Purchase of office furniture is a capital expenditure.
Hope u understand it. ✌
The amount of capital expenditure during the year is Rs.1,60,000. (Option B)
Given:
Wages=Rs. 50,000, Purchase of building= Rs.1,00,000, Purchase of office furniture= Rs. 60,000, Salary=Rs.60,000, Petrol charges Rs. 20,000
To find:
The amount of capital expenditure during the year
Solution:
We can find the solution by following the given process-
We know that capital expenditure refers to the amount spent on fixed or long-term assets.
Out of the given expenses, the purchase of building, office furniture constitutes capital expenditures.
Amount of capital expenditure= Price of purchasing the building + price of office furniture
= 1,00,000+ 60,000
= Rs. 1,60,000
Therefore, the amount of capital expenditure during the year is Rs. 1,60,000.