What will be Amount of Capital Expenditure?

A machinery is purchased for Rs. 3,00,000 and Rs. 50,000 is spent on its installation Rs. 5,000 is spent on fuel. What will be amount of capital expenditure?

  1. Rs. 3,00,000
  2. Rs. 3,50,000
  3. Rs. 3,55,000
  4. None of these
Anurag Mishra Professor Asked on 28th November 2015 in Maths.
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  • 1 Answer(s)

    Answer is (2) Rs.350000

    The capital expenditure of machine will be
    = Machine Purchase Price + Installation Charges
    =3,00,000 + 50,000
    =3,50,000.

    Total capital expenditure will be Rs. 3, 50, 000.

    Hence, the answer is (2) Rs. 3, 50, 000.

    Monis Rasool Professor Answered on 29th November 2015.
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