Question No 02 Chapter No 17

Question No 02 Chapter No 17

02.Which of the following expenses are capital or revenue? Also state reasons

  1. Expenses incurred on a foreign tour for purchasing a new machinery Rs 50,000
  2. Rs 1,500 paid for the removal of stock to a new site
  3. Custom duty paid Rs 14,500 on import of a machinery
  4. Gagan Cinema owners spent Rs 12,000 for machinery two more exits in the cinema hall as per legal requirement
  5. Rs 28,000 spent to reduce working expenses
  6. Rs 7,500 spent on repainting the office building

 

The solution of Question No 02 Chapter No 17:-

 
S.NO Transaction
CapitalRevenue
     
(i)Expenses incurred on a foreign tour for purchasing a new machinery Rs 50,000 Capital 
     
(ii)Rs 1,500 paid for the removal of stock to a new site  Revenue
     
(iii)Custom duty paid Rs 14,500 on import of a machinery Capital 
     
(iv)Gagan Cinema owners spent Rs 12,000 for machinery two more exits in the cinema hall as per legal requirement  Revenue
     
(v)Rs 28,000 spent to reduce working expenses Capital 
     
(vi)Rs 7,500 spent on repainting the office building  Revenue
    

 

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. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting 

Chapter No. 3 – Origin of Transactions

Chapter No. 4 – Vouchers and transactions

Chapter No. 5 – Journal

Chapter No. 6 – Accounting for Goods and Services Tax(GST)

Chapter No. 7 – Ledger

Chapter No. 8 – Cash Book

Chapter No. 9 – Other Subsidiary Books

Chapter No. 10 – Journal Proper

Chapter No. 11 – Trial Balance

Chapter No. 12 – Bank Reconciliation Statement

Chapter No. 13 – Depreciation

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)

Chapter No. 18 – Financial Statements – (With Adjustments)

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