Rajiv purchases a generator for his office. Giving reason, answer the following questions :-
1. Purchase of a generator by Rajiv is an intermidiate expenditure.
2. Exp. on the maintenance of the generator is an intermidiate expenditure.
Dear Student
- Purchase of Generator is Not an intermediate expenditure because Generator is a Asset and amount spent on purchase of an Asset is Capital Expenditure , therefore this is a Capital Expenditure and not intermediate expenditure .
- Expenses on maintenance of any asset is Revenue expenditure (intermediate expenditure) , Here generator is also an asset , therefore It is a Intermediate Expenditure .