Jhalak started business with cash 50000 she paid rent of shop 5000 purchased furniture for 20500 and paid 500 on its cartage she paid wages 3000 and advertising expenses 2000 identify and calculate the value of various kind of expenditure
Answers
Various kind of expenditures are are given below.
Explanation:
Capital - 50000
This is jhalak capital expenditure. She started business with cash.
Rent - 5000
Rent paid is revenue expenditure .
Furniture - 20500+500 = 21000
The total amount of furniture will be 21000. We add cartage to the value of asset purchased.
Wages- 3000
Wages paid to various Labour is another expenditure.
Advertisement expenses - 2000
It is also an expenditure for the company.
Type of expenditure
Explanation:
Amount invested in business considered as Capital expenditure
Capital expenditure = 50,000
Revenue expenditure are used to run business activity smoothly:
Revenue expenditure:
Rent = 5,000
Wages = 3000
Advertisement expenditure = 2,000
Assets value:
Furniture value + cartage pay
Furniture value = 20,500 + 500
Furniture value = 21,000
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