Required: (a) Explain what is meant by 'capital expenditure' and by 'revenue expenditure' and how each is treated in the financial records of a company. (10 marks) (b) Some of the following items should be treated as capital and some as revenue. For each of them state which classification applies: (i) The purchase of machinery for use in the business. (ii) Carriage paid to bring the machinery in (i) above to the works. (iii) Complete redecoration of the premises at a cost of $1,500. (iv) A quarterly account for heating. (v) The purchase of a soft drinks verding machine for the canteen with a stock of soft drinks. (vi) Wages paid by a building contractor to his own workmen for the erection of an office in the builder's stockyard. (15 marks)