Angus Scott is in business as an estate agent, some of his transactions are given below: LO6

(a) Rent

(b) Purchase of photocopying machine

(c) Commission received from builder

(d) Fees received from clients for professional services

(e) Wages of secretary

(f) Cost of new display equipment

(g) Cost of installing new display equipment

(h) Redecoration of shop front

(i) Proceeds from sale of old computer You are required to:

(a) Explain the meaning of the following accounting terms:

Capital expenditure Revenue expenditure Capital receipts Revenue receipts.

(b) Rule up four columns headed: Capital expenditure, Revenue expendi¬ ture, Capital receipt and Revenue receipt, and list items (a)-(i) in the appropriate columns.