Question: IQBAL BRS. have acquired a machine on January 01, 2018 by incurring the following expenditures on cash basis: List price Rs. 200,000 with 10% trade

IQBAL BRS. have acquired a machine on January 01, 2018 by incurring the following expenditures on cash basis:

  1. List price Rs. 200,000 with 10% trade discount.
  2. During loading a part of machine is damaged due to negligence of staff costing Rs. 8,000.
  3. Machine was insured against risk of fire for Rs. 1,500 for six months.
  4. Sales tax on machine Rs. 20,000
  5. Installation and testing cost Rs. 8,000.
  6. Freight charges Rs. 9,000.
  7. Insurance in transit Rs. 6,000.
  8. Custom duty on machine Rs. 30,000
  9. Property tax on machine Rs. 5,000 for 6 months.


Required

Prepare separate schedules of Capital Expenditures and Revenue Expenditures and total it.


Step by Step Solution

★★★★★

3.40 Rating (150 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

Explain why expected net income is also called "accretion of discount."

Q:

The company acquired a machine on January 1 at an original cost of $80,000. The machines estimated residual value is $10,000, and its estimated life is 4 years. (1) Compute the annual straight-line...

Q:

The company acquired a machine on January 1 at an original cost of $81,000. The machine's estimated residual value is $15,000, and its estimated life is 20,000 service hours. The actual usage of the...

Q:

Ironic Metal Products, Inc., acquired a machine on January 2, 2010, for $76,600. The useful life of the machine was estimated to be eight years with a salvage value of $4,600. Depreciation is...

Q:

Omega prepares financial statements under International Financial Reporting Standards. In the year ended 31 March 2007 the following transactions occurred: Transaction 1 On 1 April 2006 Omega began...

Q:

Q # 2 IQBAL BRS. have acquired a machine on January 01, 2018 by incurring the following expenditures on cash basis: List price Rs. 200,000 with 10% trade discount. During loading a part of machine is...

Q:

Various Inventory Issues The following independent situations relate to inventory accounting. 1. Kim Co. purchased goods with a list price of $175,000, subject to trade discounts of 20% and 10%, with...

Q:

Isolution Company acquired patent rights on January 4, 2007, for $750,000. The patent has a useful life equal to its legal life of 15 years. On January 7, 2010, Isolution successfully defended the...

Q:

Marston Marble Corporation is considering a merger with the Conroy Concrete Company. Conroy is a publicly traded company, and its current beta is 1.30. Conroy has been barely profitable, so it has...

Q:

Scribners Corporation produces fine papers in three production departmentsPulping, Drying, and Finishing. In the Pulping Department, raw materials such as wood fiber and rag cotton are mechanically...

Q:

Orosco Supply Co. has the following transactions related to notes receivable during the last 2 months of 2010. Nov. 1 Loaned $15,000 cash to Sally Givens on a 1-year, 10% note. Dec. 11 Sold goods to...

Q:

You have been selected to be the Project Manager (for a project of your choice). The project that you decide to use should meet the key criteria of a project, such as (a) having a beginning and an...

Q:

Propose a structure for a compound C15H24O that has the following 1H NMR spectrum. The peak marked by an asterisk disappears when D2O is added to thesample. TMS 10 8. 0 ppm Chemical shift (8)...

Q:

Who is protected using the Force Majeure Clause? Investors Hospitality Businesses Consumers Both Hospitality Businesses and the Consumers

Q:

The fixed and variable costs for three manufacturing plant sites for a product are shown in the following table: a. Over what range of production is each location optimal? b. Which site is best for...

Q:

Subway, with more than 20,000 outlets in the U.S., is planning for a new restaurant in Buffalo, New York. Three locations are being considered. The following table gives the factors for each site....

Q:

For the past several years, Steffy Lopez has operated a part-time consulting business from his home. As of July 1, 2016, Steffy decided to move to rented quarters and to operate the business, which...

Q:

Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2016. The accounting cycle for Kelly Consulting for April, including financial statements, was illustrated in this chapter....

Q:

Using T accounts for Cash, Accounts Receivable, Sales Tax Payable, Sales, Sales Returns and Allowances, and Sales Discounts, enter the following sales transactions. Use a new set of accounts for each...

Q:

Esters are Question 7 options: a) found in some medicines b) often fragrant c) essential oils in fruits and flower d) found in some types of flavorings e) all of the above

Q:

IQBAL BRS. have acquired a machine on January 01, 2018 by incurring the following expenditures on cash basis: List price Rs. 200,000 with 10% trade discount. During loading a part of machine is...

Q:

Hi- Please take a look at the attached Word document for detailed requirements on an 8-page evaluation. Let me know what you think, and we can discuss price, plus a healthy tip. Task: (1) The...

Q:

QUESTION;- Elaborate your overalllearning on consumer behaviour from the case Daikin India: Paradise Lost describes a real-life situation faced, a decision or action taken by an individual manager or...

Q:

PLEASE PAY CLOSE ATTENTION TO QUESTIONS, they all have parts and I have the question number next to screenshots to show which number question it is. Please just provide answer, make sure to label...

Q:

prepare brs(q1 &q2) and show the depreciation on slm and dbm BRS 1. From the following particulars prepare bank reconciliation statement as on 31t December 2010. a) Bank balance as per cash book...

Q:

Take the Balance sheet of Deewan Cement Company LTD as given below in Figure 01 and Calculate common size analysis for the year 2018-19. Figure 01 *Note: Follow format for calculation on your answer...