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Get complete step-by-step solutions for T.S. Grewal Double Entry Book Keeping Class 11 - 2025-2026 - Chapter 19 - Financial Statement of Sole Proprietorship. Study double-entry system details, practice timed problems, and verify answers directly.
Chapter 19 - Financial Statement of Sole Proprietorship
State whether the following expenses are capital or revenue in nature:
(i) Expenses on whitewashing and painting of a building purchased to make it ready for use.
(ii) ₹10,000 spent on constructing a platform for a new machine.
(iii) Repair expenses of ₹25,000 incurred for whitewashing of the factory building.
(iv) Insurance premium paid as renewal premium.
(v) Purchased a new car.
| Item | Classification |
|---|---|
| (i) | Capital Expenditure — incurred to make an asset ready for use |
| (ii) | Capital Expenditure — incurred to make an asset ready for use |
| (iii) | Revenue Expenditure — incurred for the maintenance of an existing asset |
| (iv) | Revenue Expenditure — a recurring part of normal operating cost |
| (v) | Capital Expenditure — an asset to be used in the business for a number of years |
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.