Consider the following statements regarding accounting classifications: Statement 1: A bank spends 50 crore rupees on the complete redesign and structural reinforcement of its zonal headquarters to allow for the installation of heavy automated security vaults which significantly increases the building safety rating and decides to capitalize this total amount. Statement 2: The same bank spends 5 crore rupees on whitewashing and painting all its branches in the region to maintain a clean appearance, and this amount is debited to the repairs and maintenance account as revenue expenditure. Statement 3: When the bank sells an old delivery van for 2 lakh rupees which had a book value of 1.5 lakh rupees, the entire 2 lakh rupees is treated as a revenue receipt. Which of the statements given above are correct?

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Accounting · Capital and Revenue Principles

Verified Solution4 OptionsUpdated: October 2026👁️1 View

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Correct answer

Only Statement 1 and Statement 2 are correct.

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Answer 1

Only Statement 1 and Statement 2 are correct.

Answer 2

Only Statement 2 and Statement 3 are correct.

Answer 3

Only Statement 1 and Statement 3 are correct.

Answer 4

All statements are correct.

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