The money spent for repairs of a motor car used by the business is a
Money spent on routine repairs and maintenance of an existing motor car used in the business neither extends the asset's original useful life nor increases its earning…
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The money spent for repairs of a motor car used by the business is a
Answer and explanation
Correct answer A
Money spent on routine repairs and maintenance of an existing motor car used in the business neither extends the asset's original useful life nor increases its earning capacity; instead, it merely maintains the asset in normal working order and is therefore classified as a 'Revenue Expenditure'.
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UGC NET Management