Accounting MCQ Questions and Solutions with Explanations | Commerce

Capital expenditure is incurred to acquire or improve a fixed asset, resulting in an increase in its useful life, capacity, or efficiency.

On the other hand, revenue expenditure is incurred for maintaining assets in their normal working condition.

Repairs and painting of an old building are routine maintenance activities and do not enhance the life or capacity significantly, so they are revenue expenditure.

Repairing and servicing of an old typewriter is also a normal maintenance expense, hence revenue in nature.

Retreading of truck tyres only restores usability and does not increase efficiency beyond the original condition, so it is revenue expenditure.

Repairing of staircases, unless it involves major improvement, is generally treated as revenue expenditure.

Thus, none of the given options qualify as capital expenditure.

Hence, the correct answer is None of the above.