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A building worth Rs.35 lakhs was purchased and it was dismantled with Rs.1 lakh and it was decided to build as shopping mall. The cost of construction of building was Rs.50,00,000 and other expenses of Rs.50,000. The amount of capital expenditure is
- a)Rs. 86,00,000
- b)Rs. 86,50,000
- c)Rs. 85,50,000
- d)Rs. 85,00,000
Correct answer is option 'A'. Can you explain this answer?
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A building worth Rs.35 lakhs was purchased and it was dismantled with ...
Calculation of Capital Expenditure
The capital expenditure is the total amount of money spent on acquiring and improving a long-term asset. In this question, we need to calculate the capital expenditure for the purchase and construction of the shopping mall.
1. Purchase of the Building
The cost of the building is given as Rs. 35 lakhs, and an additional amount of Rs. 1 lakh was spent on dismantling it. Therefore, the total cost of acquiring the building is:
35 lakhs + 1 lakh = Rs. 36 lakhs
2. Construction of the Shopping Mall
The cost of construction of the shopping mall is given as Rs. 50 lakhs, and other expenses incurred in the process were Rs. 50,000. Therefore, the total cost of construction is:
50 lakhs + 50,000 = Rs. 50,50,000
3. Calculation of Capital Expenditure
The capital expenditure is the sum of the cost of acquisition and the cost of improvement. Therefore, the capital expenditure for the shopping mall is:
36 lakhs + 50,50,000 = Rs. 86,00,000
Hence, option 'A' is the correct answer, and the capital expenditure for the shopping mall is Rs. 86,00,000.
The capital expenditure is the total amount of money spent on acquiring and improving a long-term asset. In this question, we need to calculate the capital expenditure for the purchase and construction of the shopping mall.
1. Purchase of the Building
The cost of the building is given as Rs. 35 lakhs, and an additional amount of Rs. 1 lakh was spent on dismantling it. Therefore, the total cost of acquiring the building is:
35 lakhs + 1 lakh = Rs. 36 lakhs
2. Construction of the Shopping Mall
The cost of construction of the shopping mall is given as Rs. 50 lakhs, and other expenses incurred in the process were Rs. 50,000. Therefore, the total cost of construction is:
50 lakhs + 50,000 = Rs. 50,50,000
3. Calculation of Capital Expenditure
The capital expenditure is the sum of the cost of acquisition and the cost of improvement. Therefore, the capital expenditure for the shopping mall is:
36 lakhs + 50,50,000 = Rs. 86,00,000
Hence, option 'A' is the correct answer, and the capital expenditure for the shopping mall is Rs. 86,00,000.
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Community Answer
A building worth Rs.35 lakhs was purchased and it was dismantled with ...
All the expenses are included in capital expenditure.
that is 35 lakh + 1 lakh + 50 lakh = 8600000
but 50000 will not be included in capital expenditure because this is other expenses which is not related to capital expenditure.
that is 35 lakh + 1 lakh + 50 lakh = 8600000
but 50000 will not be included in capital expenditure because this is other expenses which is not related to capital expenditure.
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A building worth Rs.35 lakhs was purchased and it was dismantled with Rs.1 lakh and it was decided to build as shopping mall. The cost of construction of building was Rs.50,00,000 and other expenses of Rs.50,000. The amount of capital expenditure isa)Rs. 86,00,000b)Rs. 86,50,000c)Rs. 85,50,000d)Rs. 85,00,000Correct answer is option 'A'. Can you explain this answer?
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A building worth Rs.35 lakhs was purchased and it was dismantled with Rs.1 lakh and it was decided to build as shopping mall. The cost of construction of building was Rs.50,00,000 and other expenses of Rs.50,000. The amount of capital expenditure isa)Rs. 86,00,000b)Rs. 86,50,000c)Rs. 85,50,000d)Rs. 85,00,000Correct answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A building worth Rs.35 lakhs was purchased and it was dismantled with Rs.1 lakh and it was decided to build as shopping mall. The cost of construction of building was Rs.50,00,000 and other expenses of Rs.50,000. The amount of capital expenditure isa)Rs. 86,00,000b)Rs. 86,50,000c)Rs. 85,50,000d)Rs. 85,00,000Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A building worth Rs.35 lakhs was purchased and it was dismantled with Rs.1 lakh and it was decided to build as shopping mall. The cost of construction of building was Rs.50,00,000 and other expenses of Rs.50,000. The amount of capital expenditure isa)Rs. 86,00,000b)Rs. 86,50,000c)Rs. 85,50,000d)Rs. 85,00,000Correct answer is option 'A'. Can you explain this answer?.
A building worth Rs.35 lakhs was purchased and it was dismantled with Rs.1 lakh and it was decided to build as shopping mall. The cost of construction of building was Rs.50,00,000 and other expenses of Rs.50,000. The amount of capital expenditure isa)Rs. 86,00,000b)Rs. 86,50,000c)Rs. 85,50,000d)Rs. 85,00,000Correct answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A building worth Rs.35 lakhs was purchased and it was dismantled with Rs.1 lakh and it was decided to build as shopping mall. The cost of construction of building was Rs.50,00,000 and other expenses of Rs.50,000. The amount of capital expenditure isa)Rs. 86,00,000b)Rs. 86,50,000c)Rs. 85,50,000d)Rs. 85,00,000Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A building worth Rs.35 lakhs was purchased and it was dismantled with Rs.1 lakh and it was decided to build as shopping mall. The cost of construction of building was Rs.50,00,000 and other expenses of Rs.50,000. The amount of capital expenditure isa)Rs. 86,00,000b)Rs. 86,50,000c)Rs. 85,50,000d)Rs. 85,00,000Correct answer is option 'A'. Can you explain this answer?.
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A building worth Rs.35 lakhs was purchased and it was dismantled with Rs.1 lakh and it was decided to build as shopping mall. The cost of construction of building was Rs.50,00,000 and other expenses of Rs.50,000. The amount of capital expenditure isa)Rs. 86,00,000b)Rs. 86,50,000c)Rs. 85,50,000d)Rs. 85,00,000Correct answer is option 'A'. Can you explain this answer?, a detailed solution for A building worth Rs.35 lakhs was purchased and it was dismantled with Rs.1 lakh and it was decided to build as shopping mall. The cost of construction of building was Rs.50,00,000 and other expenses of Rs.50,000. The amount of capital expenditure isa)Rs. 86,00,000b)Rs. 86,50,000c)Rs. 85,50,000d)Rs. 85,00,000Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of A building worth Rs.35 lakhs was purchased and it was dismantled with Rs.1 lakh and it was decided to build as shopping mall. The cost of construction of building was Rs.50,00,000 and other expenses of Rs.50,000. The amount of capital expenditure isa)Rs. 86,00,000b)Rs. 86,50,000c)Rs. 85,50,000d)Rs. 85,00,000Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
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