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Shinchan Ltd. spent the following amounts for his business during the year 2020-21 Purchase of Furniture ₹ 2,50,000Spent on whitewash of building ₹1,00,000 (expected to last for 3 years) Services of Air conditioners ₹20,000 Rent of godown ₹60,000 How will you classify the above expenditures? (a) Capital Expenditure ₹3,50,000; Revenue Expenditure ₹80,000 (b) Capital Expenditure ₹2,50,000; Revenue Expenditure ₹1,80,000(c) Capital Expenditure ₹2,50,000; Revenue Expenditure ₹80,000; Deferred Revenue Expenditure ₹1,00,000 (d) Capital Expenditure ₹3,50,000; Revenue Expenditure ₹60,000; Deferred Revenue Expenditure ₹1,20,000 |
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Answer» Correct option is (c) Capital Expenditure ₹2,50,000; Revenue Expenditure ₹80,000; Deferred Revenue Expenditure ₹1,00,000 |
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