Rajiv purchases a generator for his office. Giving reason, answer the following questions :-
1. Purchase of a generator by Rajiv is an intermidiate expenditure.
2. Exp. on the maintenance of the generator is an intermidiate expenditure.

Dear Student
  1. Purchase of Generator is Not an intermediate expenditure because Generator is a Asset and amount spent on purchase of an Asset is Capital Expenditure , therefore this is a Capital Expenditure and not intermediate expenditure .
  2. Expenses on maintenance of any asset is Revenue expenditure (intermediate expenditure) , Here generator is also an asset , therefore It is a Intermediate Expenditure .

  • 9
1- no it is not I.EXP.
2-  YES
  • -4
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