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State, whether you would consider the following as Capital Expenditure or Revenue Expenditure. Purchase of two typewriters.

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Question

State, whether you would consider the following as Capital Expenditure or Revenue Expenditure.

Purchase of two typewriters.

One Line Answer
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Solution

Capital Expenditure

Reason:

It is Capital Expenditure because the value of fixed assets has increased.

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Chapter 6: Capital and Revenue Expenditure/Income - PRACTICAL PROBLEMS [Page 85]

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Goyal Brothers Prakashan Commercial Studies [English] Class 10 ICSE
Chapter 6 Capital and Revenue Expenditure/Income
PRACTICAL PROBLEMS | Q 5. (i) | Page 85
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