Question No 01 Chapter No 17
01. Classify the following expenses into capital or revenue:
- A property dealer purchased 3 flats for Rs 9,00,000
- Compensation paid to customers for defective goods supplied Rs 18,000
- Rs 2,500 spent on machinery for repair necessitated by negligence of the workman
- Legal expenses incurred Rs 12,000 to retain the title of building purchased for business in litigation with third party
- Rs 2,600 spent for transportation on the purchase of machinery.
The solution of Question No 01 Chapter No 17:-
| S.NO | Transaction |
Capital | Revenue | |
| (i) | A property dealer purchased 3 flats for Rs 9,00,000 | Revenue | ||
| (ii) | Compensation paid to customers for defective goods supplied Rs 18,000 | Revenue | ||
| (iii) | Rs 2,500 spent on machinery for repair necessitated by the negligence of the workman | Revenue | ||
| (iv) | Legal expenses incurred Rs 12,000 to retain the title of building purchased for business in litigation with the third party | Capital | ||
| (v) | Rs 2,600 spent for transportation on the purchase of machinery. | Capital | ||
Final Accounts: Definition and Explanation
Profit and Loss Account: Meaning, Format & Examples
Balance Sheet: Meaning, Format & Examples
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Also, Check out the solved question of all Chapters: –
Usha Publication – Elements of Book-Keeping PSEB (Class 11) – Solution
Chapter No. 2 – Theory Base of Accounting
Chapter No. 3 – Origin of Transactions
Chapter No. 4 – Vouchers and transactions
Chapter No. 6 – Accounting for Goods and Services Tax(GST)
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Chapter No. 9 – Other Subsidiary Books
Chapter No. 10 – Journal Proper
Chapter No. 11 – Trial Balance
Chapter No. 12 – Bank Reconciliation Statement
Chapter No. 14 – Provisions and Reserves
Chapter No. 15 – Bills of Exchange
Chapter No. 16 – Rectification of Errors
Chapter No. 17 – Financial Statements – (Without Adjustments)
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