Question No 07 Chapter No 17 - D.K Goal 11 Class

Question No 07 Chapter No 17

07. The following are a few transactions of Sugar Mill Company:-

Acquired 500 Bighas of land for an agriculture farm at an annul rent of Rs 25,000 and paid Rs 2,000 per Bigha as Lease Premium.
Spent 5 Lac. In purchasing animals and implement for the farm.
Cost of pucca water drains constructed on the land Rs 50,000
Two bullocks costing Rs 80,000 were killed by lightening
Canal irrigation charges paid to Government Rs 10,000
Besides sugarcane, other crops valued Rs 25,000 were produced and sold.
State with reasons whether these items are capital or Revenue.

The solution of Question No 07 Chapter No 17: –

i	Annul rent is revenue Expenditure and Lease premium is capital Expenditure
ii	Capital Expenditure
iii	Capital Expenditure
iv	Loss is the capital Loss
v	Reserve Expenditure
vi	Reserve Expenditure

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Also, Check out the solved question of all Chapters: –

Chapter 1 Evolution of Accounting & Basic Accounting Terms
Chapter 2 Accounting Equations
Chapter 3 Meaning and Objectives of Accounting
Chapter 4 Double Entry System
Chapter 5 Books of Original Entry – Journal
Chapter 6 Accounting for Goods and Service Tax (GST) (Coming soon)
Chapter 7 Books of Original Entry – Cash Book (Coming soon)
Chapter 8 Books of Original Entry – Special Purpose Subsidiary Books (Coming soon)
Chapter 9 Ledger (Coming soon)
Chapter 10 Trial Balance and Errors (Coming soon)
Chapter 11 Bank Reconciliation Statement (Coming soon)
Chapter 12 Depreciation (Coming soon)
Chapter 13 Bills of Exchange (Coming soon)
Chapter 14 Generally Accepted Accounting Principles(GAAP)
Chapter 15 Bases of Accounting
Chapter 16 Accounting Standards and International Financial Reporting Standard(IFRS) (Coming soon)
Chapter 17 Capital and Revenue
Chapter 18 Provisions and Reserves
Chapter 19 Final Accounts (Coming soon)
Chapter 20 Final Accounts – With Adjustments (Coming soon)
Chapter 21 Errors and their Rectification (Coming soon)
Chapter 22 Accounts from Incomplete Records – Single Entry System (Coming soon)
Chapter 23 Accounts of Not-for-Profit Organisations (Coming soon)
Chapter 24 Computerised Accounting System (Coming soon)
Chapter 25 Introduction to Accounting Information System (Coming soon)

Check out the Accountancy Class +1 by D.K. Goal (Arya Publication) from their official Site.