WAEC Financial Accounting 1992 Question 43

Question 43

Capital and Revenue Expenditure

Rufai, a vulcaniser bought 4 machines for ₦20,200 and incurred the following expenses for the year ended 31st December, 1990
Glue: ₦2,100
Thread: ₦600
Kerosine: ₦900
Rubber: ₦558
Matches: ₦110
He received ₦5,772 from customers. Two machines were later sold for ₦6,990 and ₦5,670 respectively.

What is his revenue receipt?

  1. A.₦18,432
  2. B.₦12,660
  3. C.₦6,990
  4. D.₦5,772
  5. E.₦5,670.
Show the answer and explanation

Answer: D (₦5,772)

Explanation

Money from customers for his services, ₦5,772.