ICSE Class 10 Commerce 2020 Solved Papers

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SECTION - I

Distinguish between :
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Capital and Revenue expenditure.
Solution:  
Difference between capital and revenue expenditure :
(i) Capital expenditure is shown in the Balance Sheet as an asset. Whereas revenue expenditure is shown as an expense in the Trading Account or Profit and Loss Account.
(ii) Capital expenditure is of a non-recurring nature because such expenditure is not incurred every day. Whereas revenue expenditure is recurring in nature as it is incurred on day to day operations.
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