6/27/09

Worked Example On Capital,Revenue Expenditure

Before attempting this question, refresh yourself by going to the main topic on capital & revenue expenditure

1.0 From the following items of expenditure of " Tommy Garage" classify between them capital and revenue expenditure:

(a) Wages for workers
(b) Purchase of a Tow Truck
(c) Telephone accunt
(d) Purchase a Breakdon vehicle
(e) Insurance
(f) Trolley jack
(g) Uniform for his workers
(h) Allowances for his workers
(i) Vehicle lift
(j) Hand cleaner
(k) Lubricating oil pump
(l) Cost of printing business card
(m) Purchase of a new Car
(n) Entertainment charges incurred
(o) Purchase a new office safe
(p) Cost of installing office sale
(q) Heating and lighting-quarterly account
(r) Office files, punch and sundry stationery items
(s) Purchase a new printer for computer


Answer:
(a) revenue expenditure
(b) capital expenditure
(c) revenue expenditure
(d) capital expenditure
(e) revenue expenditure
(f) capital expenditure
(g) & (h) revenue expenditure
(i) capital expenditure
(j) capital expenditure
(k) capital expenditure
(l) revenue expenditure
(m) capital expenditure
(n) revenue expenditure
(o) capital expenditure
(p) capital expenditure
(q) revenue expenditure
(r) revenue expenditure
(s) capital expenditure

No comments:

Post a Comment