Multiple choice

The payment of Rs. 2,00,000 paid at the time of purchase of building to vacate the tenant shall be

  1. revenue expenditure

  2. deferred revenue expenditure

  3. miscelleneus expenditure

  4. capitalized to the cost of building

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The payment of Rs. 2,00,000 paid by the purchaser at the time of purchase of building to vacate the tenant shall be capitalized and added to the cost of the building as per the AS - 10 ”Accounting to Fixed Assets”.