1
Illustration 1:
State which of the following expenditures are capital in nature and
which are revenue in nature:
Freight and cartage on the new machine rs.150; erection
charges Rs.200.
A sum of rs.10,000 on painting the new factory.
Fixtures of the book value of rs.1,500 was sold off at rs.600 and
new fixtures of the value of rs.1,000 were acquired, cartage on
purchase rs.50.
Rs.1,000 spent on repairs before using a second hand car purchased
recently.