No. 7(a): One item of revenue and one item of capital expenditure:
Revenue expenditure – The payment of rent expenses
Capital expenditure – The purchase of the packaging machine.
No. 7(b): Below are the 'T-accounts’ requested opened in the appropriate ledgers:
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The author holds a Bsc (Hons) Degree in Applied Accounting from Oxford Brookes University, England and enjoys a successful career as an Accounting Supervisor and a private tutor.