CIE Accounting Paper-1: Specimen Questions with Answers 210 - 211 of 214

Passage

The following transaction were took place in the book of Manisha:

The following transaction were took place in the book of Manisha

given table in transaction were took place in the book of Manisha:

Sold goods to Angel on credit

$17500

Bought goods for cash from Charles

$22500

Met travelling expenses

$2000

Received $40000 from Santosh as loan

-

Paid wages to workers

$3000

Question number: 210 (2 of 2 Based on Passage) Show Passage

Essay Question▾

Describe in Detail

Mention any two sources of documents.

Explanation

The few examples of source documents are

  • Cash memo
  • Invoice or bill
  • Receipts
  • Debit note
  • Credit Note
  • Pay-in-slip
  • Cheque
  • Vouchers
  • Bills receivables
  • Bills payable
  • Wage sheet
  • Salary register
  • Correspondence

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.