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State whether the following are capital, revenue and deferred revenue. 

(a) Legal fees paid to the lawyer for acquiring a land Rs. 20,000. 

(b) Heavy advertising cost of Rs. 12,00,000 spent on introducing a new product.

(c) Renewal of factory licence Rs. 12,000. 

(d) A sum of Rs.  4,000 was spent on painting the factory.

1 Answer

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Best answer

(a) Capital expenditure 

(b) Deferred revenue expenditure 

(c) Revenue expenditure 

(d) Revenue expenditure

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