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{"ops":[{"insert":"HnH Solutions acquired a machine by making the following payments:\nNet cash price Rs. 116,000 including 16% Sales tax; Carriage in Rs. 6,000; Insurance in transit Rs. 5,000; Fire insurance for the next 4 years Rs. 8,000; Installation charges Rs. 20,000; Overhauling Charges (Before Use); Charges to repair the damage caused during installation Rs. 2,000.\n\u00a0\n"},{"attributes":{"italic":true},"insert":"REQUIRED:"},{"insert":"\n1)\u00a0\u00a0\u00a0\u00a0Classify the above payments into "},{"attributes":{"bold":true},"insert":"capital expenditures"},{"insert":" and "},{"attributes":{"bold":true},"insert":"revenue expenditures"},{"insert":".\n\n2)\u00a0\u00a0\u00a0\u00a0Give and entry to record acquisition of machine, and another entry to record expenditures by Debiting General Expenses Account.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\n\n"},{"attributes":{"bold":true},"insert":"Question no 2"},{"insert":"\nOn December 31, 2010 and 2011 Balance Sheet of ABC Ltd. Shows the following\n  "},{"attributes":{"bold":true},"insert":"ASSETS"},{"insert":"\n 2011\n 2010\n   Cash\n 7000\n 4800\n   Accounts Receivable\n 8500\n 9500\n   Merchandise Inventory\n 32500\n 33200\n   Equipment\n 30100\n 24000\n   "},{"attributes":{"bold":true},"insert":"TOTAL"},{"insert":"\n "},{"attributes":{"bold":true},"insert":"78100"},{"insert":"\n "},{"attributes":{"bold":true},"insert":"71500"},{"insert":"\n   \u00a0\n \u00a0\n \u00a0\n   "},{"attributes":{"bold":true},"insert":"EQUITIES"},{"insert":"\n \u00a0\n \u00a0\n   Accumulated Depreciation Equipment\n 6100\n 4800\n   Accounts Payable\n 16800\n 19400\n   Mortgage Payable\n 6000\n 10000\n   Share Capital \u2013 Rs. 10 per share\n 30000\n 25000\n   Share Premium\n 2500\n \u00a0\n   Retained Earnings\n 16700\n 12300\n   "},{"attributes":{"bold":true},"insert":"TOTAL"},{"insert":"\n "},{"attributes":{"bold":true},"insert":"78100"},{"insert":"\n "},{"attributes":{"bold":true},"insert":"71500"},{"insert":"\n  "},{"attributes":{"italic":true,"bold":true},"insert":"Additional Information"},{"insert":":\n 1. A fully depreciated equipment that costs of Rs. 800 was discarded and related accounts were closed.\n 2. Cash dividend of Rs. 4,000 were declared and paid.\n"},{"attributes":{"italic":true,"bold":true},"insert":"Required:"},{"insert":" Prepare a Cash Flow Statement. Showing Operating, Investing, Financing activities.\n\n"}]}

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