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State whether the following statements are items of capital or revenue expenditure:

a. Expenditure incurred on repairs and w hite washing at the time of purchase of an old building in order to make it usable. 

b. Expenditure incurred to provide one more exit in cinema hall is compliance with a government order. 

c. Registration fees paid at the time of purchase of a building 

d. Expenditure incurred in the maintenance of a tea garden which will produce tea after four years. 

e. Depreciation charged on a plant. 

f. The expenditure incurred in erecting a platform on which a machine will be fixed. 

g. Advertising expenditure, the benefits of which will last for four years.

1 Answer

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by (53.7k points)
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Best answer

a. Capital expenditure 

b. Revenue expenditure 

c. Capital expenditure 

d. Capital expenditure 

e. Revenue expenditure 

f. Capital expenditure 

g. Deferred Revenue expenditure

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