11th Accountancy Monthly Test - 4 ( Capital and Revenue transactions)

MABS Institution

11th Accountancy Monthly Test - 4 ( Capital and Revenue transactions)-Aug 2020

Time : 2.00 Hours

Part - A

Generic 5 - Answer All Question

Classify the following items into capital and revenue.
i) Rs.50,000 spent for railway siding.
ii) Loss on sale of old furniture.
iii) Carriage paid on goods sold.

State whether the following are capital, revenue and deferred revenue.
i) Legal fees paid to the lawyer for acquiring a land Rs.20,000.
ii) Heavy advertising cost of Rs.12,00,000 spent on introducing a new product.
iii) Renewal of factory licence Rs.12,000.
iv) A sum of Rs.4,000 was spent on painting the factory.

Classify the following into capital and revenue.
i) Rs.560 spent on replacement of a worn our part of plant.
ii) Rs.1,500 spent on complete overhauling of a second hand machinery just bought.
iii) Carriage expenses Rs.230.
iv) Profit on sale of asset Rs.700
v) Rs.150 loss on sale of furniture.

Identify the following items into capital or revenue.
i) Audit fees paid Rs.10,000.
ii) Labour welfare expenses Rs.5,000.
iii) Rs.2,000 paid for servicing the company vehicle.
iv) Repair to furniture purchased second hand Rs.3,000.
v) Rent paid for the factory Rs.12,000

State whether they are capital and revenue.
i) Construction of building Rs.10,00,000.
ii) Repairs to furniture Rs.50,000.
iii) White-washing the building Rs.80,000
iv) Pulling down the old building and rebuilding Rs.4,00,000

Explain the basic considerations in determining the difference between capital and revenue expenditure.

Classify the following expenditure under capital and revenue.
i) Rs.2,500 spent on purchasing a tyre for a car.
ii) Rs.2,00,000 spent on remodeling a building.
iii) Trademark of the business is registered at Rs.50,000.
iv) Rs.5,00,000 worth goods purchased for the purpose of sale.
v) Machinery was depreciated by Rs.10,000.

Explain briefly any five examples of revenue expenditure becoming capital expenditure.

Kumar gives you the following expenses which were incurred in his business during the year 2003, classify them into capital, revenue or deferred revenue.
i) Rs.12,000 spent on purchasing a patent right.
ii) Freight charges paid on new plant amounts to Rs.700
iii) Repairs of Rs.600 for furniture.
iv) Rs.10,000 spent towards expenses connected with rainwater harvesting as per Government orders.
v) Rs.7,500 spent towards initial advertising expenses.

Classify the following receipts into capital and revenue.
i) Sale proceeds of goods Rs.75,000.
ii) Loan borrowed from bank Rs.2,50,000
iii) Sale of investment Rs.1,20,000.
iv) Commission received Rs.30,000.
v) Rs.1,400 wages paid in connection with the erection of new machinery.

State whether the following expenditures are capital, revenue or deferred revenue.
i) Advertising expenditure, the benefits of which will last for three years.
ii) Registration fees paid at the time of registration of a building.
iii) Expenditure incurred on repairs and whitewashing at the time of purchase of an old building in order to make it usable.

Classify the following receipts under capital and revenue.
i) Rs.3,00,000 worth of debentures are issued for raising loan.
ii) Rs.5,000 received as dividend from the investment on shares.
iii) Gokul started business with Rs.4,00,000.
iv) A machinery costing Rs.50,000 was sold for Rs.50,000.
v) Creditors allowed discount Rs.30,000.

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11th Accountancy Monthly Test - 4 ( Capital and Revenue transactions)

MABS Institution

11th Accountancy Monthly Test - 4 ( Capital and Revenue transactions)-Aug 2020

Part - A

Generic 5 - Answer All Question

Classify the following items into capital and revenue. i) Rs.50,000 spent for railway siding. ii) Loss on sale of old furniture. iii) Carriage paid on goods sold.

Classify the following into capital and revenue. i) Rs.560 spent on replacement of a worn our part of plant. ii) Rs.1,500 spent on complete overhauling of a second hand machinery just bought. iii) Carriage expenses Rs.230. iv) Profit on sale of asset Rs.700 v) Rs.150 loss on sale of furniture.

Identify the following items into capital or revenue. i) Audit fees paid Rs.10,000. ii) Labour welfare expenses Rs.5,000. iii) Rs.2,000 paid for servicing the company vehicle. iv) Repair to furniture purchased second hand Rs.3,000. v) Rent paid for the factory Rs.12,000

State whether they are capital and revenue. i) Construction of building Rs.10,00,000. ii) Repairs to furniture Rs.50,000. iii) White-washing the building Rs.80,000 iv) Pulling down the old building and rebuilding Rs.4,00,000

Explain the basic considerations in determining the difference between capital and revenue expenditure.

Explain briefly any five examples of revenue expenditure becoming capital expenditure.

Classify the following receipts into capital and revenue. i) Sale proceeds of goods Rs.75,000. ii) Loan borrowed from bank Rs.2,50,000 iii) Sale of investment Rs.1,20,000. iv) Commission received Rs.30,000. v) Rs.1,400 wages paid in connection with the erection of new machinery.

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Classify the following items into capital and revenue.
i) Rs.50,000 spent for railway siding.
ii) Loss on sale of old furniture.
iii) Carriage paid on goods sold.

Classify the following into capital and revenue.
i) Rs.560 spent on replacement of a worn our part of plant.
ii) Rs.1,500 spent on complete overhauling of a second hand machinery just bought.
iii) Carriage expenses Rs.230.
iv) Profit on sale of asset Rs.700
v) Rs.150 loss on sale of furniture.

Identify the following items into capital or revenue.
i) Audit fees paid Rs.10,000.
ii) Labour welfare expenses Rs.5,000.
iii) Rs.2,000 paid for servicing the company vehicle.
iv) Repair to furniture purchased second hand Rs.3,000.
v) Rent paid for the factory Rs.12,000

State whether they are capital and revenue.
i) Construction of building Rs.10,00,000.
ii) Repairs to furniture Rs.50,000.
iii) White-washing the building Rs.80,000
iv) Pulling down the old building and rebuilding Rs.4,00,000

Classify the following receipts into capital and revenue.
i) Sale proceeds of goods Rs.75,000.
ii) Loan borrowed from bank Rs.2,50,000
iii) Sale of investment Rs.1,20,000.
iv) Commission received Rs.30,000.
v) Rs.1,400 wages paid in connection with the erection of new machinery.