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Rs. 2,500 spent on the overhaul of a machine purchased s econd-hand is _________
  • a)
    Capital expenditure
  • b)
    Revenue expenditure
  • c)
    Deferred revenue expenditure
  • d)
    None of the above
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
Rs. 2,500 spent on the overhaul of a machine purchased s econd-hand is...
Rs. 2,500 spent on the overhauling on purchase of second hand machinery to put it in working condition and to derive endurable long- term advantage is a capital expenditure.
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Most Upvoted Answer
Rs. 2,500 spent on the overhaul of a machine purchased s econd-hand is...
Any type of exp incurred on second hand goods for increasing its efficiency/capacity/ up gradation will be cap exp
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Rs. 2,500 spent on the overhaul of a machine purchased s econd-hand is _________a)Capital expenditureb)Revenue expenditurec)Deferred revenue expenditured)None of the aboveCorrect answer is option 'A'. Can you explain this answer?
Question Description
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