(a) You are required to pass necessary journal entries in the books of Kewal: (i) Cheque...
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(a) You are required to pass necessary journal entries in the books of Kewal: (i) Cheque amounting 9,000 from Hari Krishan in full settlement of his account for 10,000. (ii) Withdrawn for personal use: Goods (Sales Price 8,000, Cost 6,000), cash €1,000 (iii) Goods costing ₹ 3,000 (Sale price 4,000) distributed as free samples. (iv) Received commission 10,000, half of which does not relate of current year and is received in advance. (v) Purchased second hand machinery from Jawahar for 30,000 against a cheque. Goods of 12,000 (Cost 9,000) used in repairs of this machinery which is necessary to make it ready for working. Capital or Revenue Expenditure (b) Classify the following expenditures as capital or revenue expenditure: (i) An extension of railway tracks in the factory area. (ii) Amount spent on painting the factory. (iii) Payment of wages for building a new office extension. (iv) Amount paid for removal of stock to a new site. (v) Rings and Pistons of an engine were changed to get full efficiency. (a) You are required to pass necessary journal entries in the books of Kewal: (i) Cheque amounting 9,000 from Hari Krishan in full settlement of his account for 10,000. (ii) Withdrawn for personal use: Goods (Sales Price 8,000, Cost 6,000), cash €1,000 (iii) Goods costing ₹ 3,000 (Sale price 4,000) distributed as free samples. (iv) Received commission 10,000, half of which does not relate of current year and is received in advance. (v) Purchased second hand machinery from Jawahar for 30,000 against a cheque. Goods of 12,000 (Cost 9,000) used in repairs of this machinery which is necessary to make it ready for working. Capital or Revenue Expenditure (b) Classify the following expenditures as capital or revenue expenditure: (i) An extension of railway tracks in the factory area. (ii) Amount spent on painting the factory. (iii) Payment of wages for building a new office extension. (iv) Amount paid for removal of stock to a new site. (v) Rings and Pistons of an engine were changed to get full efficiency.
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Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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