M/ s. XYZ & Co, runs a cafe. They renovated some of the old cabins. Because of this renovation some space was made free and number of cabins was in...

Question

M/ s. XYZ & Co, runs a cafe. They renovated some of the old cabins. Because of this renovation some space was made free and number of cabins was increased from 15 to 18. The total expenditure incurred was~ 30,000 and was treated as a revenue expenditure. [Nov. 2019, 2 Marks]

Accepted Answer

Option : Correct Option. Solution: False: This expenditure should be treated as Capital expenditure since it will increase profitability of the business.

M/ s. XYZ & Co, runs a cafe. They renovated some of the old cabins. Because of this renovation some space was made free and number of cabins was increased from 15 to 18. The total expenditure incurred was~ 30,000 and was treated as a revenue expenditure. [Nov. 2019, 2 Marks]

Options

Correct Answer

All Options:

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