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I

Accounting

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I. In the fast food outlet divide the following costs according to

whatever they are capital expenditure or revenue expenditure


a) purchase of deep fat fryer 
b) painting logo outside premises
c) rental charge for premises 
d) purchase of buns for burgers
e) delivery charge for deep fat fryer
f) interest charge for loan taken out to purchase fat fryer
g) part-time staffing costs
h) purchase of drinks machine


II. from the following information calculate the capital cost of the new factory
£
Purchase price of land 140000
Construction charge of equipment 85000
Insurance for plant and equipment 4800
Installation costs of plant and equipment 3600
Business rates 8900
Legal fees 12000
Total costs 2543000


Capital costs..................... £


III. For the following data calculate the amounts to be included both capital and revenue expenditure
£
Buying new machine 4500
Delivery costs of new machine 755
Power costs for machine for financial machine 1120
Installation costs for machine 92
Maintenance of machine 217


Capital expenditure ............................£
Revenue expenditure.........................£














IV. The following costs are associated with the purchase of a new food counter for a delicatessen. Calculate the amounts to be included in capital and revenue expenditure :
£
Purchase of new food counter 5600
Installation costs of food counter 460
Inventory for food counter 710
Refrigeration costs for first year of food counter 226
Staffing costs of food counter 9800
Carriage inwards charged on delivery of food for counter 180
Carriages inwards on food counter 250


Capital expenditure..............................£
Revenue expenditure............................£


V. Petra Gadd has produced an income statement for her first year of business. However she has made errors in classifying some of her expenditure:
£
Gross profit 5453
Less expense
Insurance 423
Wages 3123
Carriage outwards on goods sold 123
New office fixtures 950
Marketing costs 765
Installation costs of new fixtures 99
Net loss 30
The gross profit includes income from the sale of a fixed asset amounting to £320
   Produce a corrected statement of comprehensive income for Petra ?