Accounting Process-Books of Accounts - Capital and Revenue Receipts (CA Foundation Principles of Accounting): Questions 1 - 6 of 8

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Question number: 1

» Accounting Process » Books of Accounts - Capital and Revenue Receipts

Short Answer Question▾

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State weather the following are capital or revenue receipts with reasons

  1. Amount realized on sale of old furniture

  2. Bad debts realized

  3. Fees received from apprentices

  4. Loan taken from bank

Question number: 2

» Accounting Process » Books of Accounts - Capital and Revenue Receipts

Essay Question▾

Describe in Detail

Differentiate between capital and revenue receipts?

Explanation

Capital and revenue receipts are different from each other on the following basis:

Difference between capital and revenue receipt

The basis on which capital and revenue receipts are differentiated from each other

Basis of difference

Capital receipt

Revenue receipt

Nature

These are non-recurring in nature

Its recurring in nature

Accounting… (74 more words) …

Question number: 3

» Accounting Process » Books of Accounts - Capital and Revenue Receipts

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Justify your answers after classifying the following into capital and revenue receipts

  1. Owner’s contribution towards capital

  2. Entrance fees received by a club

  3. Subsidy received from government

  4. Sale revenue received by Hyundai from the sale of cars

Question number: 4

» Accounting Process » Books of Accounts - Capital and Revenue Receipts

Short Answer Question▾

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What is the meaning of the term Capital Receipt? Give example.

Question number: 5

» Accounting Process » Books of Accounts - Capital and Revenue Receipts

Short Answer Question▾

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Just classify the following into capital or revenue expenditures or as capital or revenue receipts as the case may be:

  1. Term loan from bank

  2. Dividend received from investments

  3. Expense incurred in R&D with no fruitful results

  4. Expenditure incurred in conversion of petrol driven car to diesel driven car to reduce the operational expenses

Question number: 6

» Accounting Process » Books of Accounts - Capital and Revenue Receipts

Short Answer Question▾

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Classify the following into capital or revenue expenditures or as capital or revenue receipts as the case may be. Justify your classification.

  1. Purchase of machinery for Rs. 200000, sales tax on it is 5%, carriage involved is Rs. 20000 and an installation expense is Rs. 10000.

  2. An amount of Rs. 2000 spent on repairs and Rs. 5000 was sent on replacing the worn out parts of a machine.

  3. Rs. 50000 was paid in connection to obtain the trade license to start the business.

  4. Rs. 100000 was received as insurance claim on machine damaged in fire.

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