Subject

Principles of Accounting

Class/form
Form 4

CALA type
Pen and paper

Topic
Capital and revenue expenditure

Concept/Skills
 Decision-making in identification and differentiation between two
expenditure types
 Problem-solving in distinguishing between the two expenditure types
 Critical thinking
 Creativity in presenting work

Dimension/Criteria to be assessed
 Defining capital and revenue expenditure
 Classifying capital and revenue expenditure using examples
 Discussing differences between capital and revenue expenditure
 Present written report on exercise

Objectives to be assessed
 Define and differentiate between capital and revenue expenditure.
 List and classify capital and revenue costs

Time frame
 5 days

CALA context learners will:

Identify and explain capital and revenue expenditure and show how to treat
these costs it the books of accounts.

Facilitator Notes
Facilitator to:
 Give an expository position on capital and revenue.
 Assist learners to identify capital and revenue expenditure from a list of
items
 Clarify on difficult and confusing items of capital and revenue
expenditure
 Assist with general presentation framework

Marking guide
1. Definition of capital and revenue expenditure (4)

2. Classification of costs into capital and revenue expenditure (12)

3. Showing 4 difference between capital and revenue expenditure (12)

4. Listing 4 examples each for capital and revenue expenditure (12)

LEARNER CALA GUIDE

Name

School

Class
Date

Background
It has been observed that learners are failing to correctly identify and classify
costs when preparing financial statements. You will be required to correctly
define, distinguish between and classify costs in order to correctly post them to
financial records.

Time frame: 5 days

Dimensions/activities
1. Defining capital and revenue expenditure

2. Classifying costs into capital and revenue expenditure

3. Showing difference between capital and revenue expenditure

4. Listing examples of capital and revenue expenditure

Achievement standards
 EXCELLENT (Grade 1, 90-100%)

Dimensions
Defining: Excellent development of sound definitions

Classifying: Sophisticated classification of capital and revenue expenditure

Differentiating: Identification of 4 differences between capital and revenue

expenditure

Listing: Giving 4 examples each for capital and revenue expenditure

Presenting: Exceptionally creative and clear

 GOOD (Grade 2, 79-89%)

Dimensions
Defining: Good definitions
Classifying: Demonstrate sound understanding of capital and revenue
expenditure

Differentiating: Identification of 3 differences between capital and revenue

expenditure

Listing: Giving 3 examples each of capital and revenue expenditure

Presenting: Clear presentation

 SATISFACTORY (Grade 3, 50-69%)

Dimensions
Defining: Satisfactory explanation of capital and revenue expenditure

Classifying: Better understanding of capital and revenue expenditure

Differentiating: Identify 2 differences between capital and revenue expenditure

Listing: Giving 2 examples each of capital and revenue expenditure

Presenting: Satisfactory and general

 INADEQUATE (Grade 4, 40-49%)

Dimensions
Defining: Unsatisfactory development of definitions

Classifying: Limited understanding of capital and revenue expenditure

Differentiating: Identify 1 difference between capital and revenue expenditure

Listing: Giving one example each of capital and revenue expenditure

Presenting: Little effort in clear presentation

  UNSATISFACTORY (Grade 5, 0-39%)

Dimensions
Defining: Cannot give a sound definition

Classification: Little or no understanding of capital and revenue expenditure

Differentiating: Unable to give any difference between capital and revenue

expenditure

Listing: Unable to give any correct example each of capital and revenue
expenditure

Presenting: Unable to organise work in an understandable way