If repair cost of a building is Rs. 15,000, whitewash expenses are Rs. 10,000, cost of extension of building is Rs. 5,00,000 and cost of improvement in electrical wiring system is Rs. 25,000. The amount to be expensed is

Repair costs (Rs. 15,000) and whitewash expenses (Rs. 10,000) are revenue expenditures that benefit the current period and must be expensed immediately. The building extension (Rs. 5,00,000) and electrical wiring improvement (Rs. 25,000) are capital expenditures that enhance the asset's value and must be capitalized. Total expense = Rs. 15,000 + Rs. 10,000 = Rs. 25,000. Options A and B incorrectly include capital expenditures.