Question

Which of the following is considered as Outgoings in expenses?

(i) Repairs

(ii) Sinking fund

(iii) Loss of rent

1. (i) and (ii) 
2. (ii) and (iii)
3. (i) and (iii)
4. (i), (ii) and (iii)

Answer 1

Correct Answer - Option 4 : (i), (ii) and (iii)
Explanation

Outgoings are the expenses that are required to be incurred to maintain the revenue of the building. The various types of outgoings are as follows:

i) Taxes: Municipal tax, Property tax, Wealth tax, etc

ii) Repairs

iii) Management and collection charges

iv) Sinking fund

v) Loss of rent

vi) Miscellaneous: This includes electric charges for running lift, pump, for lightning common places, etc

Note: Capital cost is the total cost of construction including land, or the original total amount required to possess a property. It is the original cost and does not change.