Which of the following transactions is of capital nature?

Purchase of a truck.

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Spare parts of truck.

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Cost of repairing of truck.

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All of these.

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Solution

The correct option is C Purchase of a truck.
Revenue expenditure are those which are incurred for day to day business operations.
Capital expenditure are those which are incurred for procuring an asset. Like purchase of plant, building etc.
Purchase of a truck is a transaction of capital nature as truck is an asset for the firm.

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