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(a) Explain clearly the difference between capital expenditure and revenue expenditure.   (b)        Classify the items listed below either as capital or revenue expenditure.          Fittings partition in a new shop; Carriage on returns outwards; Cost of weighing machine in a retail shop; Repairs to office safe; Legal costs of collecting debts; Legal costs of building materials for a new office building; Carriage costs of building materials for a new office building; Purchase of an extra motor vehicle for distributor of soda and beer; Cost of paint for repainting the hospital wards from green to blue; Cost of paying for registration number plates of a new motor vehicle; Cost of replacing registration number plates of a motor vehicle;

(a) Explain clearly the difference between capital expenditure and revenue expenditure.   (b)        Classify the items listed below either as capital or revenue expenditure.          Fittings partition in a new shop; Carriage on returns outwards; Cost of weighing machine in a retail shop; Repairs to office safe; Legal costs of collecting debts; Legal costs of building materials for a new office building; Carriage costs of building materials for a new office building; Purchase of an extra motor vehicle for distributor of soda and beer; Cost of paint for repainting the hospital wards from green to blue; Cost of paying for registration number plates of a new motor vehicle; Cost of replacing registration number plates of a motor vehicle;

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments
Section: Chapter Questions
Problem 19E
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(a) Explain clearly the difference between capital expenditure and revenue expenditure.

 

(b)        Classify the items listed below either as capital or revenue expenditure.       

 

  • Fittings partition in a new shop;
  • Carriage on returns outwards;
  • Cost of weighing machine in a retail shop;
  • Repairs to office safe;
  • Legal costs of collecting debts;
  • Legal costs of building materials for a new office building;
  • Carriage costs of building materials for a new office building;
  • Purchase of an extra motor vehicle for distributor of soda and beer;
  • Cost of paint for repainting the hospital wards from green to blue;
  • Cost of paying for registration number plates of a new motor vehicle;
  • Cost of replacing registration number plates of a motor vehicle;

 

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