11th Accountancy Monthly Test - 3 ( Capital and Revenue transactions )

MABS Institution

11th Accountancy Monthly Test - 3 ( Capital and Revenue transactions )-Aug 2020

Time : 2.00 Hours

Part - A

Generic 2 - Answer All Question

State with reasons whether the following are capital or revenue expenditure:
i. Expenses incurred in connection with obtaining a licence for starting the factory for Rs.25,000.
ii. A factory shed was constructed at a cost of Rs.2,00,000. A sum of Rs.10,000 had been incurred in the construction of temporary huts for storing building material.
iii. Overhaul expenses of second-hand machinery purchased amounted to Rs.5,000.

What is Capital profits?

Classify the following expenditures and receipts as capital or revenue:
i) Rs.10,000 spent as travelling expenses of the directors on trips abroad for the purchase of fixed assets.
ii) Amount received from trade receivables during the year.
iii) Amount spent on demolition of building to construct a large building on the same site.
iv) Insurance claim received on account of a machinery damaged by fire.

State whether the following are capital, revenue or deferred revenue expenditure.
i) Carriage of Rs.1,000 spent on machinery purchased and installed.
ii) Office rent paid Rs.2,000.
iii) Wages of Rs.5,000 paid to machine operators.
iv) Hire charges for the use of motor vehicle, hired for five years, but paid yearly.

State whether the following are capital or revenue items.
i. Rs.5,000 spent towards additions to buildings.
ii. Second-hand motorcar purchased for Rs.30,000 and paid Rs.2,000 as repairs immediately.
iii. Rs.10,000 was spent on painting the new factory.
iv. Freight and cartage on the new machine Rs.150, erection charges Rs.200.
v. Rs.150 spent on repairs before using a second hand car purchased recently.

Classify the following expenses as capital or revenue.
i) The sum of Rs.3,200 has been spent on a machine as follows:
a) Rs.2,000 for additions to double the output.
b) Rs.1,200 for repairs necessitated by negligence.
ii) Overhauling expenses of Rs.25,000 for the engine of a motor car to get better fuel efficiency.
What is meant by deferred revenue expenditure?

Mr. Vasudevan gives you the following transactions in his business, classify into capital or revenue.
i) Purchases of goods worth Rs.7,000 for the purpose of Selling.
ii) Rs.1,200 fire insurance for the building for business.
iii) Renewal of magazine subscription fee Rs.125.
iv) Purchased land for Rs.1,00,000.

Explain the features of capital expenditure.

What is Revenue profit?

What is capital expenditure?

Classify as capital and revenue.
(i) Cost of maintenance of building.
(ii) Investments costing Rs.40,000 were purchased a few years back, were sold for Rs.50,000.
(iii) Annual white washing charges amounted to Rs.1,000.

What is meant by revenue expenditure?

Classify the following items under capital and revenue.
i) Expenses in connection with obtaining a licence for the business were Rs.50,000.
ii) Free samples distributed for Rs.1,00,000 to introduce a new product in the market.
iii) Rs.20,000 worth of goods which is not insured destroyed due to fire.

Write a short note on:
a) Capital Loss b) Revenue Loss

Any two examples of deferred revenue expenditure.

State the nature of the following transactions:
i) Carriage paid on goods purchased.
ii) Legal expenses incurred for abuse of trade mark.
iii) Money raised by issue of equity shares.

State with reasons whether the following are capital or revenue or deferred revenue expenditure:
i) Advertisement expenses amounted to Rs.10 crores to introduce a new product.
ii) Expenses on freight for purchasing new machinery.
iii) Freight and insurance on the new machinery and cartage paid to bring the new machinery to the factory.

State the nature of the following transactions.
i) Expenditure incurred on issue of equity shares.
ii) Cost of formation of anew company.
iii) Cost of Rs.10,000 incurred in increasing the sitting accommodation and Rs.5,000 in repainting of cinema house.

InstaQB

Institutions

12th Standard English Medium

12th Standard Tamil Medium

11th Standard English Medium

11th Standard Tamil Medium

10th Standard English Medium

9th Standard English Medium

8th Standard English Medium

7th Standard English Medium

Class XII

Class XI

12Th Standard

11Th Standard

10Th Standard

9Th Standard

11th Accountancy Monthly Test - 3 ( Capital and Revenue transactions )

MABS Institution

11th Accountancy Monthly Test - 3 ( Capital and Revenue transactions )-Aug 2020

Part - A

Generic 2 - Answer All Question

What is Capital profits?

What is meant by deferred revenue expenditure?

Explain the features of capital expenditure.

What is Revenue profit?

What is capital expenditure?

Classify as capital and revenue. (i) Cost of maintenance of building. (ii) Investments costing Rs.40,000 were purchased a few years back, were sold for Rs.50,000. (iii) Annual white washing charges amounted to Rs.1,000.

What is meant by revenue expenditure?

Write a short note on: a) Capital Loss b) Revenue Loss

Any two examples of deferred revenue expenditure.

State the nature of the following transactions: i) Carriage paid on goods purchased. ii) Legal expenses incurred for abuse of trade mark. iii) Money raised by issue of equity shares.

State the nature of the following transactions. i) Expenditure incurred on issue of equity shares. ii) Cost of formation of anew company. iii) Cost of Rs.10,000 incurred in increasing the sitting accommodation and Rs.5,000 in repainting of cinema house.

What are the features of deferred revenue expenditure?

Explain the features of revenue expenditure.

What is revenue receipts? Give any two examples.

What is capital profit?

What is capital receipt?

Write a short note on revenue receipt.

Write a note on capital receipt. Give any two examples.

Part - B

Generic 3 - Answer All Question

What are the classifications of expenditures?

Distinguish between capital expenditure and revenue expenditure.

What is deferred revenue expenditure? Give two examples.

Distinguish between capital receipt and revenue receipt.

Write any three examples of revenue expenditure.

Comment

Other Study material

11th Accountancy Monthly Test - 2 ( Rectification

11th Accountancy Weekly Test - 2 ( Rectification o

11th Accountancy Weekly Test - 3 ( Rectification o

11th Accountancy Weekly Test - 4 ( Rectification o

11th Accountancy Monthly Test - 1 ( Rectification

11th Accountancy Weekly Test - 1 ( Rectification o

11th Accountancy Monthly Test - 4 (Computerised Ac

11th Accountancy Monthly Test - 3 ( Depreciation A

11th Accountancy Monthly Test - 2 ( Depreciation A

11th Accountancy Monthly Test - 1 ( Depreciation A

11th Accountancy Weekly Test - 4 ( Depreciation Ac

11th Accountancy Weekly Test - 3 ( Depreciation Ac

11th Accountancy Weekly Test - 2 ( Depreciation Ac

11th Accountancy Weekly Test - 1 ( Depreciation Ac

11th Accountancy Monthly Test - 4 ( Rectification

Tamilnadu Stateboardszs - Class

Classify as capital and revenue.
(i) Cost of maintenance of building.
(ii) Investments costing Rs.40,000 were purchased a few years back, were sold for Rs.50,000.
(iii) Annual white washing charges amounted to Rs.1,000.

Write a short note on:
a) Capital Loss b) Revenue Loss

State the nature of the following transactions:
i) Carriage paid on goods purchased.
ii) Legal expenses incurred for abuse of trade mark.
iii) Money raised by issue of equity shares.

State the nature of the following transactions.
i) Expenditure incurred on issue of equity shares.
ii) Cost of formation of anew company.
iii) Cost of Rs.10,000 incurred in increasing the sitting accommodation and Rs.5,000 in repainting of cinema house.