AIOU SOLVED ASSIGNMENT 2 CODE 438 AUTUMN 2015

AIOU SOLVED ASSIGNMENT 2 CODE 438 PRINCIPLES OF ACCOUNTING

EXPLAIN REVENUE EXPENDITURE AND CAPITAL EXPENDITURE

Q 03:

We are going to upload 2^nd solved assignment for course code 438 semester autumn 2015 and spring 2016 for bachelor level students. This is 3^rd question for accounting code 438 which relates with Capital or Revenue expenditures.

Sr.No     NATURE OF EXPENDITURE           REASONS

1:            Revenue Expenditure    :               It is R.Exp because the erection of machinery can be sold.

2:            Capital Expenditure        :               It is C.Exp because of repairing of Machines can increase the value of Assets.

3:            Capital Expenditure        :               It is a C.Exp because the building can be increased the value of Capital.

4:            Capital Expenditure        :               It is a C.Exp because the construction of plant increased the value of capital.

5:            Capital Expenditure        :               It is a capital expenditure because uniform to staff can increase the value of capital.

6:            Revenue Expenditure    :               It is revenue Expenditure.

7:            Revenue Expenditure    :               Loss on the sales of fixed asset can be increase the income, so it is revenue expenditure.

8:            Capital Expenditure        :               The loss of damage and destroyed of assets can decrease the value of capital, so it is capital expenditure.

9:            Capital Expenditure        :               Cost of goodwill can increase the value of capital, so it can be capital expenditure.

10:          Capital Expenditure        :               It is a capital expenditure because plant can be existing the value of capital decreases.

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