Question

Classify the above mentioned accounts (in Question 1.IA) into Asset, Liability, Capital, Revenue and Expenses.

Answer 1

The above mentioned accounts in question 1.IA can be classified into the following types of accounts.

Assets	Liabilities	Capital	Revenue	Expenses
3) Goods A/c	10) Outstanding Expenses A/c	1) Life Insurance Premium A/c	11) Sundry Income A/c	4) Freight A/c
6) Goodwill A/c	27) Loan A/c	2) Mr. Kulkarni’s Capital A/c	21) Profit on Sale of Furniture A/c	5) Wages A/c
7) Copyright A/c		19) Drawings A/c		9) Bank Charges A/c
8) Outstanding Income A/c				13) Export Duty A/c
12)Income Receivable A/c				15) Import Duty A/c
14)Furniture A/c				16) Free Sample Distribution A/c
20) Fixed Deposit A/c				17) Sundry Expenses A/c
22) Office Equipment A/c				18) Discount A/c
23) Bank of India A/c				25) Carriage Outward A/c
24) Machinery A/c				26) Loss on Sale of Machinery A/c
28) Deposits with MSEB				29) Loss by Fire A/c
				30) Legal Expenses A/c

Notes:

1. Life Insurance premium is paid on the life of an individual, thus, it will come under the Capital Account.
2. As nothing is specified for Discount A/c, it is assumed to be discount allowed by the business and henceforth, classified as Expenses A/c.