T.S. Grewal 11 Class Financial Accounting Solutions Chapter No 18 - Financial Statement of Sole Proprietorship

Question No 01 Chapter No 18

1. 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 platform for a new machine.
iii Repair expenses of 25,000 incurred for whitewashing of factory building. iv Insurance premium paid as renewal premium. v Purchased a new car.

 

The solution of Question No 01 Chapter No 18:-

1 Capital Expenditure: Paid to make an asset ready to use

2 Capital Expenditure: Paid to make an asset ready to use

3 Revenue Expenditure: Made for the maintenance of asset

4 Revenue Expenditure: Part of normal operating cost

5 Capital Expenditure: Used in business for a number of years

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Also, Check out the solved question of previous Chapters: -

• • Chapter No. 1 – Introduction to Accounting
  • Chapter No. 2 – Basic Accounting Terms
  • Chapter No. 3 – Theory Base of Accounting, Accounting Standards and International Financial Reporting Standards(IFRS)
  • Chapter No. 4 – Bases of Accounting
  • Chapter No. 5 – Accounting Equation
  • Chapter No. 6 – Accounting Procedures – Rules of Debit and Credit
  • Goods and Services Tax(GST)
  • Chapter No. 7 – Origin of Transactions – Source Documents and Preparation of Vouchers
  • Chapter No. 8 – Journal
  • Chapter No. 9 – Ledger
  • Chapter No. 10 – Special Purpose Books I – Cash Book
  • Chapter No. 11 – Special Purpose Books II – Other Books
  • Chapter No. 12 – Bank Reconciliation Statement
  • Chapter No. 13 – Trial Balance
  • Chapter No. 14 – Depreciation
  • Chapter No. 15 – Provisions and Reserves
  • Chapter No. 16 – Accounting for Bills of Exchange
  • Chapter No. 17 – Rectification of Errors
  • Chapter No. 18 – Financial Statements of Sole Proprietorship
  • Chapter No. 19 – Adjustments in preparation of Financial Statements
  • Chapter No. 20 – Accounts from incomplete Records – Single Entry System
  • Chapter No. 21 – Computers in Accounting
  • Chapter No. 22 – Accounting Software – Tally
  • Chapter No. 5 - Accounting Equation
  • Chapter No. 6 - Accounting Procedures - Rules of Debit and Credit
  • Goods and Services Tax(GST)
  • Chapter No. 8 - Journal
  • Chapter No. 9 - Ledger
  • Chapter No. 10 – Special Purpose Books I – Cash Book

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