Accounting 0452 · IGCSE · Capital and revenue expenditure and receipts

Capital and revenue expenditure and receipts — practice question

P Limited is a retail business with a financial year ending on 30 June. Its accounts department is examining some recent capital and revenue expenditure and receipts.
(a(i))[1]

State what capital expenditure means.

(a(ii))[1]

State what revenue expenditure means.

(a(iii))[1]

State what capital receipts mean.

(a(iv))[1]

State what revenue receipts mean.

(b)[4]

Complete the table by placing a tick (✓) to show how each of the following income and expenditure items should be classified.

(c)[3]

Prepare only the retained earnings column of the statement of changes in equity for P Limited for the year ended 30 June 2025.

(d)[9]

Prepare P Limited’s statement of financial position at 30 June 2025.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: Spending on buying, improving or extending non-current assets

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