Page 1 : eciable, (a) of a new piano;, (c) on loan;, 147, [Ans. Capital (a), (h); Revenue other], (4), Expired, Club:, are under, [Ans.: Cap. receipt - (e); Cap. exp. (a); Income (b); RE - (c). (d)), nas no real, expenses, e) Bank overdraft interest., (2), a Sale of a delivery van by Office Supplies Co., Purchase of typewriter for office use by the Sonali Social Club., [Ans.: CR - (d); CE - (c); RI - (e); RE - (a), (b)], al Beceipt of commission by a firm of brokers., Ows lower, 4: State which of the following are Capital Expenditure and which are Revenue Expenditure,, m payment by cheque for carriage on purchase., m purchase of packing material for distribution of goods from the Calcutta Paper Mill Ltd., fi) purchase of duplicator for use in own office from Gulab & Co., fiv) the firm acquired a private car from B. Raha, one of the partners of the firm., Clate which account would be debited and which would be credited in each of the above cases. (Do, ws lower, generally, machine, [Ans. RE - (i) & (ii); CE - (iii) & (iv)], Q.5:S. Kahar runs a school of motoring. He informs you that his net profit for the year ended 31st, December, 2003, except for items (a) to (h) below, is 27,600. He is not sure what effect certain, transactions will have on his net profit and asks you to help him to distinguish between Capital, Expenditure and Revenue Expenditure, and between Capital Receipts and Revenue Receipts., e current, not open ledger accounts)., ure and, enditure, 5,400, 2,400, an one, Mr. Kahar provides you with his list of items as shown below:, endition, (a) Motor car repairs, (b) Telephone rental and charges, (c) Cash received in respect of insurance claims for damage to cars used for instruction, (d) Rent received from sub-letting flat above office, 4,800, 000', 13,500, 1,500, nditure, main, (e) Purchase of new car for instruction purposes, capital, () Proceeds from sale of old car replaced by the new vehicle, 9) Cost of petrol and oil, 5,250, 840, ) Commission received from motor car manufacturers, You are asked to :, of the, V enter the items under one of four headings, Capital Expenditure, Capital Receipts, Revenue Expenditure, Revenue Receipts, that 27,600 as originally calculated, and give your revised figure of net profit. If you consider, [Ans.: (i) CE - (e); CR - (f); RE - (a), (b), (g); RR- (c), (d), (h), (ii) Revised Profit - 26,190], pand, Droft p a statement showing what effect, i.e. increase / decrease, each item will have on the net