Question

A company spent Rs. 20,000 on painting of its building. It should be recorded as:

• A. Revenue Expenditure
• B. Capital Expenditure
• C. Personal Expenditure
• D. Deferred Expenditure

Hint:

Revenue expenditure maintains assets in working condition and is treated as an expense, not an asset.

Answer 1

The Correct Option is A

Painting of a building is considered maintenance, which does not create future benefits or increase the asset’s economic life. Therefore, it is classified as a Revenue Expenditure, as it is a recurring cost and charged to the income statement.