2020 PHS 3E POA EOY P1 Q4

4 The following were payments made by Marilyn in June when she bought a photocopier for the business:

i)  Toner for the copier


ii) Delivery charges 


iii) Installation and technical set-up cost


iv) Annual maintenance cost



a. Identify if the above payments (i) to (iv) are capital expenditure or revenue expenditure.


b. State the effects on the statement of financial performance and statement of financial position if a capital expenditure has been wrongly recognised as a revenue expenditure.