Question

Mr. Shyam has issued shares and debentures to commence his business. Under which category will this expenditure be classified?

विकल्प

• Revenue Expenditure

• Capital Expenditure

• Deferred revenue expenditure

• Capital Receipts

Answer 1

Capital Receipts

Explanation:

Proceeds from issuing shares and debentures are non‑recurring funds raised to finance the business; they increase owners’/creditors’ capital and are shown on the liabilities side as capital receipts, not revenue.