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Question
Amount obtained from a customer previously written off as bad debt is a ______ receipt.
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Solution
Amount obtained from a customer previously written off as bad debt is a revenue receipt.
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RELATED QUESTIONS
Distinguish between capital and revenue expenditure and state whether the following statements are items of capital or revenue expenditure:
- Expenditure incurred on repairs and whitewashing at the time of purchase of an old building in order to make it usable.
- Expenditure incurred to provide one more exit in a cinema hall in compliance with a government order.
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Write any two differences between capital and revenue Receipts.
Premium received on issue of shares is a ______.
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Give two examples of Capital receipts.
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Give three examples of Revenue receipts.
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Premium paid on issue of shares is a capital receipt.
Compensation received for the surrender of a right is a revenue receipt.
