Riverral and Sons manufacture concrete products such as fence posts, paving slabs, and lamp posts. It operates from a small factory in Pointe aux Sables. Recent success has meant that the company has had to expand its premises to increase production. Some of the expenditure incurred in the last financial year is listed below:
1. Rs 52 000 paid to a builder to construct a new extension.
2. Rs 3 000 legal fees paid to secure planning permission for the extension.
3. Rs 3 200 interest paid on a loan to fund the extension.
4. Rs 5 000 wages paid to Riverral’s own employees to construct a new loading bay plus a further Rs 4 000 for materials.
5. Rs 11 800 paid to the builder for work on existing premises (Rs 2 900 for repairing broken drainage, Rs 4 200 for installing double glazing in the office, and Rs 4 700 for installing a new heating system).
REQUIRED:
a) Prepare to Calculate the total amount of capital expenditure and the total amount of revenue expenditure for Riverral.

Answer rating: 100% (QA)

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