identify the following as revenue expenditure and capital expenditure give reasons 1.salary paid to army officers 2.purchase of metro coach from japan 3.repayment of loan 4.grants given by central government to state government 5.loan given to union territory 6.expenditure on consumption on metro 7.subsidery 8.expension on collection of taxes 9.expension on building on bridge
Dear Student
1.salary paid to army officers-Revenue expenditure, as it neither affect assets nor liability.
2.purchase of metro coach from Japan.-Capital expenditure, as it increase in assets.
3.repayment of loan ,- Capital expenditure, as it Decrease liability.
4.grants given by central government to state government, - Revenue expenditure, as it neither affect assets nor liability.
5.loan given to union territory, - Capital expenditure- Capital expenditure of the Central Government consists of plan and non-plan expenditure and is financed from capital receipts.
6.expenditure on consumption on metro ,- Capital expenditure,- it leads to creation of an asset.
7.subsidy - Revenue expenditure, as it neither affect assets nor liability.
8.expension on collection of taxes, Revenue expenditure, as it neither affect assets nor liability.
9.expension on building on bridge,- Capital expenditure, as it increase in assets.
Regards
1.salary paid to army officers-Revenue expenditure, as it neither affect assets nor liability.
2.purchase of metro coach from Japan.-Capital expenditure, as it increase in assets.
3.repayment of loan ,- Capital expenditure, as it Decrease liability.
4.grants given by central government to state government, - Revenue expenditure, as it neither affect assets nor liability.
5.loan given to union territory, - Capital expenditure- Capital expenditure of the Central Government consists of plan and non-plan expenditure and is financed from capital receipts.
6.expenditure on consumption on metro ,- Capital expenditure,- it leads to creation of an asset.
7.subsidy - Revenue expenditure, as it neither affect assets nor liability.
8.expension on collection of taxes, Revenue expenditure, as it neither affect assets nor liability.
9.expension on building on bridge,- Capital expenditure, as it increase in assets.
Regards