CIE Accounting Paper-1: Specimen Questions 211 - 212 of 214

Question number: 211

Short Answer Question▾

Write in Short

Ramesh is a retailer. Complete the following table by using a (√) to specify how each item would be classified as capital expenditure or revenue expenditure:

finding capital expenditure and Revenue expenditure

shows table in find out capital expenditure and revenue expenditure

Particular

Capital expenditure

Revenue expenditure

Delivery costs

Repair costs

Installation costs

Renewal expenses

Replacement costs

Table Title: The list of capital and revenue expenditure

Explanation

calculate Capital expenditure and Revenue expenditure

finding values of Capital expenditure and Revenue expenditure

Particular

Capital expenditure

Revenue expenditure

Delivery costs

Repair costs

Installation costs

Renewal expenses

Replacement costs

Capital expenditure includes the expenditure the benefit of which is not fully consumed in one accounting year and it is spread over to many years whereas revenue expenditure is intended to benefit the current year or during the accounting year.

Passage

The following errors were found out after preparing the trial balance of the Mathew as on 31 - 03 - 2015

  1. Purchases $5000 from Sheethal wrongly entered in the sales book.
  2. Goods taken by the proprietor $1500 not recorded in the books at all.
  3. $5200 paid for the purchase of furniture was charged to office account.

Question number: 212 (1 of 3 Based on Passage) Show Passage

Essay Question▾

Describe in Detail

From the following table put a tick mark (√) under the correct heading to show how

Correcting each of the above errors would change the profit for the year.

Changes in the profit account of the Mr. Mathew

finding a given a table values

Increase

Decrease

No effects

Error 1

Error 2

Error 3

Explanation

finding a different values of the arrors

shows table in error values are increase, decrease and no effects

Increase

Decrease

No effects

Error 1

Error 2

Error 3

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