Furniture of book value of Rs. 1,500 was sold for Rs. 600 and the new fixture of Rs. 1,000 was purchased and carriage of Rs. 25 paid. The amount of capital expenditure will be:

The correct answer is A. Rs. 1,000.

The amount of capital expenditure is the cost of the new asset, which is Rs. 1,000. The sale of the old asset is not considered a capital expenditure, as it is not a new asset. The carriage paid is also not considered a capital expenditure, as it is a cost of bringing the new asset into use.

Option B is incorrect, as it includes the sale proceeds of the old asset. Option C is incorrect, as it excludes the carriage paid. Option D is incorrect, as it includes the book value of the old asset.