Financial and Management Accounting

1: Which one of the following will be treated as revenue expenditure?
A.
Cost incurred for a new exit as required under the local bodies by laws
B.
Interest paid on loan during the construction of works
C.
Cost of pulling down an old building as also the payment made to the architect for the plan of a new building.
D.
A dealer in purchasing sewing machines and spends some money on the repair of ten machines damaged while in transit.
 

Answer : A

Explanation :

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Option: A

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