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Commerce · Q458

Accounting

Graduate and Post Graduate · Commerce · question 458

Q458

A company shifted its factory after construction of a new building. During this process, Rs. 20,000 was spent on demolishing the old structure and Rs. 2,000 in moving the old stock. How will these expenses be classified?

A.
Capital expenditure
B.
Revenue expenditure
C.
Capital and revenue expenditure respectively
Answer
D.
Deferred revenue expenditure

Answer: Option C

Solution

Answer: Option C
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