A Rogers opened his own business as a newsagent and paid for the following: LO6

(i) Wages of shop assistant

(ii) Purchase of a new cash register

(iii) Repairs to leaking shop window

(iv) Fire insurance premium

(v) A new extension to the rear of the premises to provide more storage space

(vi) Purchase of floor cleaning materials for use in the shop

(vii) Legal fees paid in connection with the building of the extension (viii) Purchase of stock for resale You are required to:

(a) For each item, state whether it is capital or revenue expenditure.

(b) Briefly explain the difference between these two types of expenditure.