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6, state with reasons wheather the following items are
capital expenditure or revenue expenditure
i, A factory building was constructed at a cost rs 1500000
a sum of rs 64000 were incurred for the construction of huts
for storing building materials
ii, rs 5000 paid for removal of stock to a new site
iii, expenses incurred in connection with obtaining a
license to start the business were rs 15000
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Answer / ajay
1 CAPITAL EXPENDITURE
2 CAPITAL EXPENDITURE
3 REVENUE EXEPNDITURE
| Is This Answer Correct ? | 5 Yes | 2 No |
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WHAT ENTRY PASSED IN BOOOKS OF ACCOUNT IF INVOICE BILING AS UNDER :. SUB TOTAL = 428325.45 VAT @12.5%= 53540.68 Additional vat 1%= 4283.25 ORDER DISCOUNT = (9722.99) ROUNDED OFF = 0.39 -------------------------- NET AMOUNT = 476426.00
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