Rings and Pistons of an engine were changed at a cost of ₹ 5,000 to get fuel efficiency.
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Amount spent as lawyer's fee to defend a suit claiming that the firm's factory site belonged to the plaintiff's land is Capital Expenditure.
Overhaul expenses of second-hand machinery purchased are Revenue Expenditure.
₹ 1,000 paid for removal of Inventory to a new site.
Money paid to Mahanagar Telephone Nigam Ltd. (MTNL) ₹ 8,000 for installing telephone in the office.
Expenses incurred in connection with obtaining a license for starting the factory for ₹ 10,000.
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Legal fees to acquire property is Capital Expenditure.
Amount spent for replacement of worn out part of machine is Capital Expenditure.
Money spent to reduce working expenses is Revenue Expenditure.
A factory shed was constructed at a cost of ₹ 1,00,000. A sum of ₹ 5,000 had been incurred in the construction of temporary huts for storing building material.
