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Also Distinction Between Capital and Revenue Receipts
Also Distinction Between Capital and Revenue Receipts
Also Distinction Between Capital and Revenue Receipts
MAINTAIN CONDITION
ASSETS
IN
WORKING
CAPITAL RECEIPTS
i. ii.
SAME IS THE CASE WITH CERTAIN RECEIPTS SUCH AS SALE OF ASSETS WHEREIN: SALE VALUE MINUS COST IS A CAPITAL RECEIPT (I.E. CAPITAL PROFIT). COST MINUS BOOK VALUE IS REVENUE RECEIPT (i.e. REVENUE PROFIT). THERE IS A THIN LINE BETWEEN CAPITAL & REVENUE CLASSIFICATION. FOR INSTANCE REPAIRS TO MACHINERY WHICH KEEPS THE ASSET IN WORKING CONDITION IS CHARGED TO THE P & L A/C WHILE BETTERMENT EXPENSE IS CAPITALISED.
UNIT 1. INTRODUCTION
Meaning of accounting and financial statements Accounting standards Accounting Mechanics
Preparation of trial balance from general ledger balances Detecting errors revealed and concealed by a trial balance Passing of different adjustments entries
Preparation of P&L a/c from a given trial balance Distinction between capital and revenue expenditure
Preparation of balance sheet Limitation of balance sheet Vertical form of financial statement Analysis of balance sheet