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Question
In the following case indicate the amount to be debited as Capital Expenditure and Revenue Expenditure:
A new machine is purchased for ₹ 25,000, ₹ 500 are spent on its carriage and ₹ 1,500 were paid as wages for its installation.
One Line Answer
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Solution
Capital ₹ 27,000 (25,000 + 500 + 1500).
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Chapter 6: Capital and Revenue Expenditure/Income - PRACTICAL PROBLEMS [Page 85]
