The data which follows was extracted from the books of account of H. Kirk, an engineer, on
Question:
The data which follows was extracted from the books of account of H. Kirk, an engineer, on 31 March 2012, his financial year end. £
(a) Purchase of extra milling machine (includes £300 for repair of an old machine) 2,900
(b) Rent 750
(c) Electrical expenses (includes new wiring £600, part of premises improvement) 3,280
(d) Carriage inwards (includes £150 carriage on new cement mixer) 1,260
(e) Purchase of extra drilling machine 4,100 You are required to allocate each or part of the items above to either ‘capital’ or ‘revenue’ expenditure.
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The allocation of expenses as capital or revenue often depends on the nature of the expense Capital expenditures are investments made by a company or ...View the full answer
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John Kago
Am a processional practicing accountant with 5 years experience in practice, I also happens to have hands on experience in economic analysis and statistical research for 3 years. am well conversant with Accounting packages, sage, pastel, quick books, hansa world, etc, I have real work experience with Strata, and SPSS
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Related Book For 
Frank Woods Business Accounting
ISBN: 9780273759287
12th Edition
Authors: Frank Wood. Sangster, Alan
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