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# Test: Capital And Revenue Expenditures And Receipts - 1

## 30 Questions MCQ Test Accountancy Class 11 | Test: Capital And Revenue Expenditures And Receipts - 1

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This mock test of Test: Capital And Revenue Expenditures And Receipts - 1 for CA Foundation helps you for every CA Foundation entrance exam. This contains 30 Multiple Choice Questions for CA Foundation Test: Capital And Revenue Expenditures And Receipts - 1 (mcq) to study with solutions a complete question bank. The solved questions answers in this Test: Capital And Revenue Expenditures And Receipts - 1 quiz give you a good mix of easy questions and tough questions. CA Foundation students definitely take this Test: Capital And Revenue Expenditures And Receipts - 1 exercise for a better result in the exam. You can find other Test: Capital And Revenue Expenditures And Receipts - 1 extra questions, long questions & short questions for CA Foundation on EduRev as well by searching above.
QUESTION: 1

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QUESTION: 2

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QUESTION: 3

### 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

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QUESTION: 4

Machinery was purchased for Rs. 10,000 and Rs. 500 paid as wages for erection of machinery? The account that should be debited is :

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QUESTION: 5

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

Solution:

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

QUESTION: 6

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:

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QUESTION: 7

Capital expenditure provide ………………….benefit:

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QUESTION: 8

Amount received from IDBI as a medium term loan for augmenting working capital is

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QUESTION: 9

Rs. 2,500 spent on the overhaul of machines purchased second-hand is

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QUESTION: 10

Recovery of Bad debt is a :

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QUESTION: 11

Loss caused by theft of cash by cashier after business hours is a :

Solution:

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.

QUESTION: 12

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 :

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QUESTION: 13

Insurance claim received on account of machinery damaged completely by fire is

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QUESTION: 14

Capital Receipts are represented in :

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QUESTION: 15

Entrance fee of Rs.2,000 received by Ram and Shyam Social club is

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QUESTION: 16

Paper purchased for use as stationery.

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QUESTION: 17

Medium term loan obtained from bank for augmenting working capital is:

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QUESTION: 18

Amount spent on unsuccessful patent right is a :

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QUESTION: 19

Preliminary Expenses are an example of :

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QUESTION: 20

‘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?

Solution:

Explanation : Cost of car Rs. 5,60,000

Repairs Rs. 25,000

Insurance Rs. 10,000

Petrol Rs.1,500

Amount debited to Car A/c Rs. 5,96,500

QUESTION: 21

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QUESTION: 22

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

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QUESTION: 23

Which of the following is a revenue expenditure ?

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QUESTION: 24

Revenue Expenditure wrongly recorded as Capital Expenditure will result in:

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QUESTION: 25

Renewal fee for patent is a:

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QUESTION: 26

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:

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QUESTION: 27

Which of the following Expenses will not be included in the acquisition of plant?

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QUESTION: 28

Amount spent on increasing the seating capacity in a cinema hall is:

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QUESTION: 29