In a factory an amount of Rs.10,000 was spent for the overhauling of existing machinery. This expenditure resulted in doubling the working capacity of the machine. During the same year an expenditure of Rs.2,00,000 was Incurred to maintain the production capacity of an old boiler plant used In the factory. What is true?

Question

Examsnet · Accepted Answer

Correct Answer is :  Revenue expenditure is Rs.2,00,000 and capital expenditure is Rs.10,000

CA CPT June 2019 Question Paper Fundamentals of Accounting for online practice