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Lect 21

Lect 21

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Published by Mohsin

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Categories:Types, Business/Law
Published by: Mohsin on Nov 20, 2009
Copyright:Attribution Non-commercial

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11/20/2009

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Financial Accounting1Lecture – 21
Recap
Up to now we have covered following areas in this course
We started off with the basic concepts of accounting,
Then we covered the basic book keeping and learnt howto record transactions,
After this basic overview we started detailed study of different items reported in the financial statements an todate we have covered following areas:oStocksoCost of Goods Sold, andoFixed Assets
 
Financial Accounting2Lecture – 21
Areas Covered in This Lecture
In this lecture we will study in detail about
Capital and Revenue Expenditure, and
Capital and Revenue Receipts
We will also establish rules to distinguish between Capitaland Revenue and see if there are any exceptions to theserules.
 
Financial Accounting3Lecture – 21
While preparing Profit and Loss we take into account onlyRevenue Expenditure and Revenue Receipts.
Whereas Capital Expenditure and Capital Receipts effectthe Balance Sheet
Therefore to present a proper Profit and Loss Account it isimportant to distinguish between Capital and Revenueitems.
First we will deal with Capital and Revenue Expenditure.

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