(a) Briefly explain the difference between capital and revenue expenditure. LO6

(b) Identify each of the following items of expenditure as capital or revenue and state whether you would expect to find each item in the trading account, profit and loss account or balance sheet:

(i) £200 paid to hauliers for carriage inwards

(ii) £125 paid to Better Garages for fitting seat belts to new van (hi) £300 for replacement of broken window

(iv) £450 to Unicold for supply and installation of refrigerated shop counter.