Distinguish between capital and revenue expenditure and state whether the following statements are items of capital...
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Distinguish between capital and revenue expenditure and state whether the following statements are items of capital or revenue expenditure (a) Expenditure incurred on repairs and whitewashing at the time of purchase of an old building in order to make it usable. (b) Expenditure incurred to provide one more exit in a cinema hall in compliance with a government order. (c) Registration fees paid at the time of purchase of the 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 platform on which a machine will be fixed. (g) Advertising expenditure, the benefits of which will last for four years. Distinguish between capital and revenue expenditure and state whether the following statements are items of capital or revenue expenditure (a) Expenditure incurred on repairs and whitewashing at the time of purchase of an old building in order to make it usable. (b) Expenditure incurred to provide one more exit in a cinema hall in compliance with a government order. (c) Registration fees paid at the time of purchase of the 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 platform on which a machine will be fixed. (g) Advertising expenditure, the benefits of which will last for four years.
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When the benefit of expenditure is to be received over a series of accounting years it is termed as ... View the full answer
Related Book For
Principles of Risk Management and Insurance
ISBN: 978-0132992916
12th edition
Authors: George E. Rejda, Michael McNamara
Posted Date:
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