Classify the following expenditures as capital or revenue expenditure: (i) Travelling expenses of the directors for trips abroad for purchase of…
CA Foundation · Accounting · RTP · May 2026
Classify the following expenditures as capital or revenue expenditure: (i) Travelling expenses of the directors for trips abroad for purchase of capital assets. (ii) Drainage for new equipment. (iii) Amount paid for removal of stock to a new site. (iv) Cost of repairs on second-hand car purchased to bring it into working condition. (v) Carriage costs on a replacement part for a piece of machinery. (vi) Repainting of a delivery van
Suggested Answer and Working Notes:
(i) Capital Expenditure. (ii) Capital Expenditure. (iii) Revenue Expenditure. (iv) Capital Expenditure. (v) Revenue Expenditure (vi) Revenue Expenditure
Topics: Capital and Revenue Expenditures and Receipts
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