Multiple choice

The capital expenditure should be shown in the financial accounts in

  1. asset side of balance sheet

  2. liability side of balance sheet

  3. debit side of profit and loss account

  4. debit side of trading account

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

It is the correct option. These are the payments made for the purchase of items like machinery, furniture, building etc. and are thus an asset.