(a) Define the following terms with relevant examples:

(i) Capital Expenditure

(ii) Revenue Expenditure

(b) "The right classification of capital and revenue expenditure is very essential for the accuracy of financial statements" - Comment.

(c) From the list given below, you are required to classify 'Capital Expenditure' and 'Revenue Expenditure.

(i) Photocopy papers bought for administrative purposes

(ii) Christmas Bonus given to employees

(iii) Mirror and tyre for motor vehicles

(iv) Purchase of Machinery for production in factory

(v) Software Development Costs for long term use

(vi) Gift Hampers given to customers

(vii) Cost of renovation for office and factory premises

(viii) Cost of installation expenses relating to machinery

(ix) Audit fees for independent auditors (x) Thumb Drive purchased for storage of information