JAMB - Accounts Principles Of Accounts (2025 - No. 68)

Capital expenditure is the
extra capital paid in by the proprietor
money spend on buying goods for resale
money spend on acquiring fixed assets
cost of running a business

Explanation

Capital expenditure is money spent on buying or improving fixed assets like land, buildings, and equipment. It includes costs to acquire new assets or extend the life of existing ones, such as repairing a building’s roof.

So, it means money spent on acquiring fixed assets.

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