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a. False: The nature of business is a very important criteria in separating an expenditure between capital and revenue. For example- For a trader dealing in furniture, purchase of furniture is revenue expenditure but for any other trade, the purchase of furniture should be treated as capital expenditure and shown in the balance sheet as asset.. b. False: Expenditure incurred for major repair of the asset so as to increase its productive capacity is capital in nature. c. False: Legal expenses incurred to defend a suit claiming that the firm's factory site belongs to the plaintiff is maintenance expenditure of the asset. By this expense, neither any endurable benefit can be obtained in future in addition to that what is presently available nor the capacity of the asset will be increased. Maintenance expenditure in relation to an asset is revenue expenditure. d. False: Amount spent for replacement of any worn-out part of a machine is revenue expense since it is part of its maintenance cost. e. True: Since temporary huts were necessary for the construction, their cost should be added to the cost of the cinema hall and thus capitalized.
If a:(b+c) =3:9 and c:(a+b) =10:14 then find the value of b:(a+c)?
In a class of 455 students, 255 are girls and remaining are boys. Among boys, the ratio of number of boys who are wearing caps to those who are not wear...
Rs. 23942 are divided between A and B in the ratio 3:7. What is the difference between thrice the share of A and twice the share of B?
In 2022, the ratio of boys to girls in a school was 8:7. By 2023, 50 boys and 80 girls had left the school, while 90 new boys and 30 new girls joined. A...
Ratio of number of book to number of pen sold by a shopkeeper is 23:15, respectively while ratio of number of pen to number of pencil sold by the same s...
Rs 1500 was divided among Sara, Ravi and Mohan in the ratio of 5:10:15 respectively. Find the amount received by Sara and Ravi together.
The ages of A, B and C are in the ratio of 4:2:7 respectively. If the sum of their ages is 52 years, then find the age of B.
Marks scored by A and B in a test are in the ratio 13:4 respectively. If B had scored 6 more marks, then marks scored by A would be 30% more than that o...
A sum of Rs. 178 needs to be divided among 60 students in a class, where each boy receives Rs. 2.5 and each girl receives Rs. 3.5. Determine the ratio o...