Question No 04 Chapter No 17

Question No 04 Chapter No 17

04. Which of the following expenses are capital, revenue or deferred revenue expenditure

  1. Rs 80,000 were spent on putting up a gallery in a cinema hall
  2. A sum of Rs 38,000 was spent overhauling its entire plant which resulted in adding five years to its working life
  3. A chartered accountant purchased books of Rs 4,000 for his profession
  4. Rs 20,000 spent on panelling walls to cover up cracks in a cinema
  5. Brokerage and stamp Duty paid Rs 2,800 on purchase of the building
  6. Spent Rs 3,200 in raising temporary huts for the workers during the construction of an office building

 

The solution of Question No 04 Chapter No 17:-

  
S.NO Transaction
CapitalRevenue Deferred Revenue
      
(i)Rs 80,000 were spent on putting up a gallery in a cinema hall Capital  
      
(ii)A sum of Rs 38,000 was spent I overhauling its entire plant which resulted in adding five years to its working life Capital  
      
(iii)A chartered accountant purchased books of Rs 4,000 for his profession  Revenue 
      
(iv)Rs 20,000 spent on panelling walls to cover up cracks in a cinema  Revenue 
      
(v)Brokerage and stamp Duty paid Rs 2,800 on purchase of building Capital  
      
(vi)Spent Rs 3,200 in raising temporary huts for the workers during the construction of an office building   Deferred 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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