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Question No 10 Chapter No 17 – D.K Goal 11 Class

Shubham
Question No 10 Chapter No 17

Question No 10 Chapter No 17

10. Classify the following between capital and Revenue giving reasons for the same:

  1. Rs 5,000 spent towards addition to the machinery
  2. Repair for Rs 1,000 necessitated by negligence
  3. Rs 500 spent to remove a worn-out part and replace it with a new one.
  4. Rs 100 wages paid in connection with the erection of new machinery
  5. Old machinery of book value Rs 7,500 worn-out, Dismantled at a cost of Rs 1,000 and scrap realized for Rs 100
  6. Second hand motor car purchased for Rs 10,000 and spent Rs 1,000 for repairs immediately
  7. Employees state insurance premium Rs 600 paid
  8. Insurance claim of Rs 5,000 received from the insurance company for the loss of goods by fire of Rs 6,000

The solution of Question No 10 Chapter No 17: –

i Capital Expenditure
ii Reserve Expenditure
iii Reserve Expenditure
iv Capital Expenditure
v Rs 7,500 less Rs 100 will be Revenue Expenses and Rs 1,000 also be Revenue Expenses
vi Capital Expenditure
vii Revenue Expenditure
viii Rs 1,000 Revenue Expenditure

https://tutorstips.com/provision-in-accounting/

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

D K Goel – New ISC Accountancy -(Class 11 – ICSE)- Solution

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

D K goel accountancy +1 - ISC_Accounts_11_20_Image-min
D K Goel accountancy +1 – ISC_Accounts_11_20_ImageQuestion No 42 Chapter No 11 – D.K Goal 11 Class

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