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Worksheets

RE vs CE 2

Total questions: 10

Worksheet time: 8mins

Name
Class
Date
1.

Rs 10,000 spent as travelling expenses of the directors on trips abroad for purchase of capital assets.

a)

Capital Expenditure

b)

Revenue Expenditure

c)

Capital Receipt

d)

Revenue Receipt

2.

Amount received from Trade receivables during the year.

a)

Capital Expenditure

b)

Revenue Expenditure

c)

Capital Receipt

d)

Revenue Receipt

3.

Amount spent on demolition of building to construct a bigger building on the same site.

a)

Capital Expenditure

b)

Revenue Expenditure

c)

Capital Receipt

d)

Revenue Receipt

4.

Insurance claim received on account of a machinery damaged by fire.

a)

Capital Expenditure

b)

Revenue Expenditure

c)

Capital Receipt

d)

Revenue Receipt

5.

Amount of Rs 5,000 spent as lawyers’ fee to defend a suit claiming that the firm’s factory site belonged to the plaintiff’s land is

a)

Capital Expenditure

b)

Revenue Expenditure

c)

Capital Receipt

d)

Revenue Receipt

6.

The entrance fee of Rs 2,000 received by Ram and Shyam Social Club is

a)

Capital Expenditure

b)

Revenue Expenditure

c)

Capital Receipt

d)

Revenue Receipt

7.

Subsidy of Rs 40,000 received from the government for working capital by a manufacturing concern is

a)

Capital Expenditure

b)

Revenue Expenditure

c)

Capital Receipt

d)

Revenue Receipt

8.

Amount received from IDBI as a medium-term loan for augmenting working capital is

a)

Capital Expenditure

b)

Revenue Expenditure

c)

Capital Receipt

d)

Revenue Receipt

9.

If the repair cost is Rs 25,000, whitewash expenses are Rs 5,000 (both these expenses relate to the presently used building), the cost of extension of the building is Rs 2,50,000, and the cost of improvement in the electrical wiring system is Rs 19,000, the amount to be expensed (revenue expenditure) is Rs

(a)  

10.

Second-hand furniture worth Rs 9,000 was purchased; repainting of the furniture costs Rs 1,000. The furniture was installed by own workmen, wages for this being Rs 200. The total capital expenditure is Rs

(a)