Expenses on a Foreign Tour to purchase a machinery is _________________.

Q. An amount of Rs. 1,25,000 spent on travelling expenses of the company's directors to a foreign trip for purchase of a plant and machinery is a ________.

Q. State whether the following expenses are capital or revenue in nature:
(i) Expenses on whitewashing and painting of a building purchased to make it ready for use.
(ii) ₹ 10,000 spent on constructing platform for a new machine.
(iii) Repair expenses of ₹ 25,000 incurred for whitewashing of factory building.
(iv) Insurance premium paid as renewal premium.
(v) Purchased a new car.

Q. Treating a revenue expense as a capital expenditure is an example of __________.

Q. Match List I with List II and select the correct answer using the codes given below the lists.
List I List II
A. Heavy advertisement expenses 1. Capital expenditure
B. Travelling expenses of the salesman 2. Revenue expenditure
C. Profit on the sale of office building 3. Capital gain
D. Purchase of plant and machinery 4. Deferred revenue expenditure

Q.

A firm earns a revenue of Rs.50,000 and the expenses to earn this revenue are Rs.30,000. Calculate its income.