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a) Cost of building extension to factory.
b) Purchase of extra filing cabinets for sales office.
c) Cost of repairs to accounting machine.
d) Cost of installing reconditioned engine in delivery van.
e) Legal fees paid in connection with factory extension.Which one is the capital and revenue and giving the reason ( shortly )
Are you setting a test?
It is better if you say which one(s) are causing a problem rather than simply demanding an answer!!Capital expenditure is when we are buying non-current assets which will appear on the Statement of financial position.
Revenue expenditure is when we are paying expenses which will appear on the Statement of profit or loss.
(Do not use the words capital and revenue on their own here – one their own they mean something completely different)
(a), (b), and (e) are capital expenditure
(c) and (d) are revenue expenditure
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