11th Accountancy Weekly Test - 2 ( Capital and Revenue transactions )

MABS Institution

11th Accountancy Weekly Test - 2 ( Capital and Revenue transactions )-Aug 2020

Time : 1.30 Hours

Part - A

Generic 2 - Answer All Question

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 is revenue receipts? Give any two examples.

What is capital receipt?

What is meant by revenue expenditure?

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 capital expenditure?

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.

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.

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.

Part - B

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

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 Weekly Test - 2 ( Capital and Revenue transactions )

MABS Institution

11th Accountancy Weekly Test - 2 ( Capital and Revenue transactions )-Aug 2020

Part - A

Generic 2 - Answer All Question

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 is revenue receipts? Give any two examples.

What is capital receipt?

What is meant by revenue expenditure?

What is capital expenditure?

What is meant by 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.

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.

Part - B

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 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.

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

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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.

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.

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.

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 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.