Is the following revenue expenditure or capital expenditure in the context of government budget ? Give reason : (i) Expenditure on collection of taxes
Is the following revenue expenditure or capital expenditure in the context of government budget ? Give reason :
(i) Expenditure on collection of taxes `" "` (ii) Expenditure on purchasing computers
(iii) Expenditure on scholarship `" " ` (iv) Expenditure on building a bridge
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(a) Expenditure on collection of taxes- it is a revenue expenditure because it neither create any assets nor reduces liability. (b) Expenditure on purchasing computers- it is a capital expenditure because it leads to creation of assets. (c) Expenditure on Scholarships-It is a revenue expenditure because it neither creates any assets nor reduces liability. (d) Expenditure on building a bridge-It is a capital expenditure because it leads to creation of assets
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