Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jan 24, 2022

Classify the following b/w Capital and revenue expenditure giving reasons for the same: a) Rs 5000 Spent towards additions to the Machinery b) Second Hand

Classify the following b/w Capital and revenue expenditure giving reasons for the same:

a) Rs 5000 Spent towards additions to the Machinery

b) Second Hand Motor Car Purchased for Rs 10000 & spent Rs 1000 for repairs immediately.

c) Premium Paid for a lease 1000

Step by Step Solution

★★★★★

3.37 Rating (156 Votes )

There are 3 Steps involved in it

Step: 1

a Rs 5000 Spent towards additions to the Machinery Reason This is a capital expenditure since it wil... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Jeffrey Waybright, Liang Hsuan Chen, Rhonda Pyper

1st Canadian Edition

9780132147538, 132889714, 013214753X , 978-0132889711

More Books

Students also viewed these Accounting questions

Question

★★★★★

Explain different test of differentiating capital and revenue expenditure with proper example.

Answered: 1 week ago

Question

★★★★★

A lessee should classify a lease transaction as a capital lease if it is noncancelable and one or more of four classification criteria are met. Otherwise, it is an operating lease. What are these...

Answered: 1 week ago

Question

★★★★★

Classify each of the following expenditures as capital expenditure (CAP) or revenue expenditure (REV): .......... a. Purchase price .......... b. Ordinary recurring repairs to keep the machinery in...

Answered: 1 week ago

Question

★★★★★

Lucy just started a new job and her employer offers a 457 plan. She is currently 30 and plans to retire at 65, her goal is to have $1,200,000 in her 457 plan when she retires. How much does she need...

Answered: 1 week ago

Question

★★★★★

Explain the three principal invasions of personal interest that make up invasion of privacy.

Answered: 1 week ago

Question

★★★★★

You are in the business of developing training and development materials and programs for work organizations. Your company is currently in the process of developing new training products. As someone...

Answered: 1 week ago

Question

★★★★★

Describe Adlers approach to the question of causation, particularly his teleological approach.

Answered: 1 week ago

Question

★★★★★

A company is forecasting the purchase of inventory from an overseas vendor with payment to be made in a foreign currency (FC). Assume an option was used as a hedging instrument for this forecasted...

Answered: 1 week ago

Question

★★★★★

Ben lives in a condominium in downtown Toronto and works as a business analyst. He earns an annual take - home salary of $ 4 8 , 0 0 0 , and every month he spends $ 1 , 1 0 0 on rent, $ 6 5 0 on car...

Answered: 1 week ago

Question

★★★★★

Refer to the data for Beyta Company above. During the most recent year, Beyta Company had the following data: Units in beginning inventory.......................- Units...

Answered: 1 week ago

Question

★★★★★

In response to the weak economy, your company's sales force is urging you, the sales manager, to change sales terms from 1/10, n/30 to 2/10, n/45. Explain what these terms mean and how this switch...

Answered: 1 week ago

Question

★★★★★

When a company runs an add stressing how their product is vastly better than the other available options, the marketer is trying to what?

Answered: 1 week ago

Question

★★★★★

1. Are there any plugins to BPMN models inKNIME? Explain. 2. Examine the similarities of workflows to BPMN processes. 3. Two modeling elements/concepts in KNIME are nodes and data. Are the...

Answered: 1 week ago

Question

★★★★★

Which are the key benefits of SAP S/4HANA Cloud for receivables management?Which of the capabilities below are included in SAP S/4HANA Cloud receivables management? Manage international trade Perform...

Answered: 1 week ago

Question

★★★★★

If your team gets together as a group to inform management that they need to be able to control the thermostat in the office to have a comfortable work environment, or else they will not be able to...

Answered: 1 week ago

Question

★★★★★

How are digital technologies changing family life? 2.) How are digital technologies changing the following social institutions: politics, education, the economy, and religion to make them better and...

Answered: 1 week ago

Question

★★★★★

If you buy a put option on a stock with a strike price of $50/share and a premium of $4/share, what is your maximum net profit you can possibly make by exercising the option? $54 per share $4 per...

Answered: 1 week ago

Question

★★★★★

A woman at a point A on the shore of a circular lake with radius 2 mi wants to arrive at the point C diametrically opposite on the other side of the lake in the shortest possible A time. She can walk...

Answered: 1 week ago

Question

★★★★★

When a company makes an expenditure, it can either capitalize or expense the cost, depending on the nature of the expenditure. What does it mean to capitalize an expenditure? What determines whether...

Answered: 1 week ago

Question

★★★★★

Presented here are the amounts of Assets, Liabilities, Shareholders Equity, Revenues, and Expenses of The Better Body, Inc. at December 31, 2013. The items are listed in alphabetical order. Accounts...

Answered: 1 week ago

Question

★★★★★

Purpose: To help familiarize you with the financial reporting of a real company to further your understanding of the chapter material you are learning. Each chapter will have a financial statement...

Answered: 1 week ago

Question

★★★★★

The following items are excerpted from an annual report of a large retailer. Requirements 1. Why is depreciation listed on the statement of cash flows? 2. Explain in detail each investing activity?

Answered: 1 week ago

Question

★★★★★

The following items are excerpted from an annual report of a large retailer. Requirements 1. Why is depreciation listed on the statement of cash flows? 2. Explain in detail each investing activity.

Answered: 1 week ago

Question

★★★★★

Air New Zealand (ANZ) is a Star Alliance member airline. Assume that early in 2017, ANZ purchased equipment at a cost of $200,000 (NZ). Management expects the equipment to remain in service for four...

Answered: 1 week ago

Previous Question Next Question