Question
Q # 2 IQBAL BRS. have acquired a machine on January 01, 2018 by incurring the following expenditures on cash basis: List price Rs. 200,000
Q # 2
IQBAL BRS. have acquired a machine on January 01, 2018 by incurring the following expenditures on cash basis:
- List price Rs. 200,000 with 10% trade discount.
- During loading a part of machine is damaged due to negligence of staff costing Rs. 8,000.
- Machine was insured against risk of fire for Rs. 1,500 for six months.
- Sales tax on machine Rs. 20,000
- Installation and testing cost Rs. 8,000.
- Freight charges Rs. 9,000.
- Insurance in transit Rs. 6,000.
- Custom duty on machine Rs. 30,000
- Property tax on machine Rs. 5,000 for 6 months.
Required
Prepare separate schedules of Capital Expenditures and Revenue Expenditures and total it.
Q # 2
IQBAL BRS. have acquired a machine on January 01, 2018 by incurring the following expenditures on cash basis:
- List price Rs. 200,000 with 10% trade discount.
- During loading a part of machine is damaged due to negligence of staff costing Rs. 8,000.
- Machine was insured against risk of fire for Rs. 1,500 for six months.
- Sales tax on machine Rs. 20,000
- Installation and testing cost Rs. 8,000.
- Freight charges Rs. 9,000.
- Insurance in transit Rs. 6,000.
- Custom duty on machine Rs. 30,000
- Property tax on machine Rs. 5,000 for 6 months.
Required
Prepare separate schedules of Capital Expenditures and Revenue Expenditures and total it.
[;pleas do this question in hand writting
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Intermediate Accounting
Authors: Earl K. Stice, James D. Stice
18th edition
538479736, 978-1111534783, 1111534780, 978-0538479738
