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Classify the following into Capital, Revenue and Deferred Revenue Expenditures, reasons for your answer. Premium ₹ 8,000 given for a lease.

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Question

Classify the following into Capital, Revenue and Deferred Revenue Expenditures, reasons for your answer.

Premium ₹ 8,000 given for a lease.

Classify
Give Reasons
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Solution

Capital Expenditure

Reason:

A fixed asset is a lease.

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Chapter 6: Capital and Revenue Expenditure/Income - PRACTICAL PROBLEMS [Page 90]

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Goyal Brothers Prakashan Commercial Studies [English] Class 10 ICSE
Chapter 6 Capital and Revenue Expenditure/Income
PRACTICAL PROBLEMS | Q 1. (iii) | Page 90
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