Question No 03 Chapter No 17

Question No 03 Chapter No 17

03. State whether the following item of expenditure are of capital or revenue nature:

  1. Rs 10,000 paid for excise duty on goods manufactured
  2. Rs 1,20,000 spent on the construction of railway siding
  3. Payment of Rs 90,000 made for acquiring the goodwill of an old firm
    Rings and pistons of an engine were charged at a cost of Rs 5,000 to get the fuel efficiency
  4. Legal expenses Rs 1,800 paid to protect the business from misuse of trade-mark by other
  5. Rs 30,000 were invested in shares
  6. Paid Rs 3,200 for installation of machinery

 

The solution of Question No 03 Chapter No 17:-

  
S.NO Transaction
CapitalRevenue Deferred Revenue
      
(i)Rs 10,000 paid for excise duty on goods manufactured   Deferred Revenue
      
(ii)Rs 1,20,000 spent on the construction of railway siding  Revenue 
      
(iii)Payment of Rs 90,000 made for acquiring the goodwill of an old firm Capital  
      
(iv)Rings and pistons of an engine were charged at a cost of Rs 5,000 to get the fuel efficiency Capital  
      
(v)Legal expenses Rs 1,800 paid to protect the business from misuse of trade-mark by other Capital  
      
(vi)Rs 30,000 were invested in shares   Deferred Revenue
      
(vii)Paid Rs 3,200 for installation 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. 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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