Classify the following transactions either as capital or revenue expenditures or as capital or revenue receipts; (i) Dividend received from XYZ…
CA Foundation · Accounting · RTP · May 2025
Classify the following transactions either as capital or revenue expenditures or as capital or revenue receipts; (i) Dividend received from XYZ limited during the year. (ii) Amount spent for replacement of a petrol driven engine by CNG kits. (iii) Expenses incurred on the repairs and white washing for the first time on purchase of an old factory. (iv) Overhauling expenses of second -hand machine purchased. (v) Insurance claim received on account of inventory damaged by fire. (vi) Entrance fees of 35,000 received by society club.
Suggested Answer and Working Notes:
1. Revenue Receipts 2. Capital Expenditure 3. Capital Expenditure 4. Capital Expenditure 5. Revenue Receipts 6. Capital Receipts
Topics: Capital and Revenue Expenditures and Receipts
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