freight and carriage paid on merchandise purchased is revenue expenditure
freight and carriage paid on merchandise purchased is revenue expenditure. but my dear merchandise means products or goods. and Furnitures is not ant product or goods that used to production. so the Charges for Furnitures is also Capital Expenses it is so simple. Watch the Lecture 5.
Dear Naveed Ahmed, if you own a dictionary you can see the meaning of goods and merchandise.My 8th edition oxford says ( goods: things that are produced to be sold) then how can you say furniture is not in the category of goods. here is an online dictionary link chk it
and next time it would be better that u justify the point. i did not found it cool when u put a smiley and said watch the lecture 5 like u were saying i am dumb or without a brain.
"paid insurance premium of the building for the financial year 2011" what is this capital or revenue?
salaam Capital expenditures are:
1. Office furniture and fixtures
2. cost of car
Revenue expenditures are:
2. Insurance premium
3. Transportation charges
4. Advertisement expenses