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Rs. 2500, spent on the overhauling on purchase of second hand machinery:
Brokerage on the issue of shares and debentures is a _______expenditure :
A second hand car is purchased for Rs. 10,000 the amount of Rs. 1,000 is spent on its repairs, Rs. 500 is incurred to get the car registered in owner’s name and Rs. 1,200 is paid as dealer’s commission. The amount debited to car account will be
Machinery was purchased for Rs. 10,000 and Rs. 500 paid as wages for erection of machinery? The account that should be debited is :
If repair cost is Rs. 25,000, whitewash expenses are Rs. 5,000, cost of extension of building is Rs. 2,50,000 and cost of improvement in electrical wiring system is Rs. 19,000; the amount to be expensed is
Repair cost = 25000
Whitewash expenses = 5000
cost of extension building = 250000
Cost of improvement in electric wiring system = 19000
Total expenses = a. 2,99,000
X limited spent Rs. 10,00,000 towards construction of office building. It also spent Rs. 50,000 towards construction of temporary store and used the store for building construction purpose. On completion of building construction the store was dismantled and the materials were sold for Rs. 20,000. Mr. A, a supervisor was paid Rs. 60,000 as his salary during the period of construction and he devoted 2/3rd of his time for the building construction. The capitalized cost of office building was:
Capital expenditure provide ………………….benefit:
Amount received from IDBI as a medium term loan for augmenting working capital is
Rs. 2,500 spent on the overhaul of machines purchased second-hand is
Recovery of Bad debt is a :
Loss caused by theft of cash by cashier after business hours is a :
Loss of cash due to theft committed either by the employees or by the outsiders, after business hours, is a capital loss because the loss is outside the trade and not incidental to the business. If the loss had been caused during the business hours it would have been a revenue loss because it is incidental to the business.
Assertion: Damages paid on account of breach of contract to supply certain goods is a capital expenditure.
Reasoning:Such damages are incurred in the ordinary course of business :
Insurance claim received on account of machinery damaged completely by fire is
Capital Receipts are represented in :
Entrance fee of Rs.2,000 received by Ram and Shyam Social club is
Paper purchased for use as stationery.
Medium term loan obtained from bank for augmenting working capital is:
Amount spent on unsuccessful patent right is a :
Preliminary Expenses are an example of :
‘A’ purchased a Car on 1.06.2010 for Rs. 5,60,000 and incurred Rs. 25,000 for repairs, etc. He paid Rs. 10,000 as insurance, Rs. 1,500 for petrol. What amount should be debited to Car A/c?
Correct Answer :- b
Explanation : Cost of car Rs. 5,60,000
Repairs Rs. 25,000
Insurance Rs. 10,000
Amount debited to Car A/c Rs. 5,96,500
Amount of Rs.5,000 spent as lawyers fee to defend a suit claiming that the firm factory site belonged to the plaintiff land is
Which of the following is a revenue expenditure ?
Revenue Expenditure wrongly recorded as Capital Expenditure will result in:
Renewal fee for patent is a:
An amount of Rs. 30,000 spent on traveling expenses of the company’s director’s to a foreign trip for purchase of an asset to be used in the production process. This is a:
Which of the following Expenses will not be included in the acquisition of plant?
Amount spent on increasing the seating capacity in a cinema hall is:
Heavy advertisement expenditure should be treated as :
Expenditure incurred of Rs. 20,000 for trial run of a newly installed machinery would be: