I'm currently a student, Im currently taking city and guilds level 2, which I am struggling with, big time There is not a lot of support online, and Im finding it a sharp contrast to level 1 currently I havent had any book keeping or accounts jobs, so everything is new
if anyone could help it would mean a lot
Many thanks Oliver
Classify the expenditure below
Expenditure Capital or Revenue
Purchase of a computer for office use
Rates on a new office building
Wages of a workforce in construction of new office building
Building insurance in respect of fire
Commission paid to salesmen
Bank charges
New tyre replaced on lorry as part of annual service
Temporary hire of car for manager while awaiting replacement
Legal charges for debt collection
Purchase of new machine
Installation costs of fitting new machine
Rent of premises
Carriage on sales
Redecorating existing offices
Electricity charges for using machinery
Repairs to machinery
-- Edited by Oliver on Friday 15th of October 2010 01:24:32 PM
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Currently Studing City & Cuilds Level 2 Book Keeping & Accounts I will sit exam 16th December, here for study help!
if you taken this course & have any tips or advice it would be greatly appreciated
revenue expenditure tends to be for things relating with the day to day running of the business, think salaries,stock, repairs etc and capital expenditure is for assets, plant & machinery, things that have a life of more than one year.
As an excercise why dont you let us know which you think each item is and we can see if you are correct.
As Rob (afternoon Rob) says, look at each item and decide if it a day to day expense (revenue expense) or the purchase of an asset (or the costs involved in aquiring the asset) to be kept for more than a year (capital expense)
I can see a couple that you might find difficult to identify but have a go
There is not a lot of support online, and Im finding it a sharp contrast to level 1 currently I havent had any book keeping or accounts jobs, so everything is new
