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Hi sir
Net profit was calculated as being $10,200.It was later discovered that capital expenditure of $ 3,000 had been treated as revenue expenditure, and revenue receipts of $1400 had been treated as capital receipts.
what’s the net profit after correcting this errors?Sir please what is the difference between capital expenditure,revenue expenditure
revenue receipts,capital receipts
Capital expenditure is the purchase of non-current assets which appear in the Statement of financial position (receipts is when you sell them).
Revenue expenditure is paying expenses – they appear in the Statement of profit or loss. Revenues receipts are income appearearing in the Statement of profit or loss.You really should read the second chapter of the free course notes on here (and watch the free lecture that goes with it)
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