Q.Repainting an existing office building to keep it in its usual condition is:
(A) Capital Expenditure
(B) Revenue Expenditure
(C) Deferred Revenue Expenditure
(D) A Capital Receipt

Repainting merely maintains the building's existing condition — it does not extend, improve, or add to the asset in any way.

Work through each option against the rule stated above; the maintain-vs-improve test is what separates this from Capital Expenditure.

The recurring test is: does the spending restore/maintain an asset's existing condition, or improve/extend it? Repainting keeps the building as it already was — it adds no new capacity, room, or value beyond restoring its appearance — so it is Revenue Expenditure, charged in full to the current year.

Option-by-option analysis:

• (A) Incorrect — Capital Expenditure would apply if the building were being EXTENDED (e.g. adding a new floor), not merely repainted.
• (B) Correct — maintaining an asset's existing condition is Revenue Expenditure.
• (C) Incorrect — this is a routine, recurring cost, not an unusually large one-time benefit spread over years.
• (D) Incorrect — this is an expenditure, not a receipt of any kind.