Michael Ong started a business on 1 July 2007. He had very little knowledge of bookkeeping, but attempted to prepare a set of final accounts at the end of his first year of trading. The final accounts Michael prepared, containing errors, are shown below. . Trading and Profit and Loss Account $ $ 80 000 2000 82 000 Sales of goods Sale of motor vehicle (AB 246) at book value Purchases of goods Purchase of new motor vehicle (CD 357) 60 000 8 000 68 000 12 000 56 000 26 000 Closing stock of goods Gross profit General expenses Bad debts Net profit 10 800 200 11 000 15 000 Balance Sheet Equipment Bank Debtors Closing stock of goods Purchases of stationery Commission received $ 2 000 1 000 7 000 12 000 200 500 22 700 17 000 5 700 22 700 Creditors Capital (balancing figure) A. Explain the difference between capital expenditure and revenue expenditure. B. Explain the difference between capital receipts and revenue receipts. C. Calculate the corrected net profit of Michael Ong for the year ended 30 June 2008. Michael Ong Statement of corrected net profit for the year ended 30 June 2008