Any lump sum receipt is always a capital receipt.

MCQ

True or False

This statement is False.

shaalaa.com

Distinction Between Capital and Revenue Receipts

Is there an error in this question or solution?

Distinguish between capital receipt and revenue receipt.

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.
Registration fees paid at the time of purchase of a building.
Expenditure incurred in the maintenance of a tea garden which will produce tea after four years.
Depreciation charged on a plant.
The expenditure incurred in erecting a platform on which a machine will be fixed.
Advertising expenditure, the benefits of which will last for four years.

Money received by sale of machine is a ______.

Rent received and commission received are examples of ______.

Non-recurring receipts like additional capital, loan, etc. are ______.

Give two examples of Capital receipts.

What are revenue receipts?

Distinguish between Capital Receipts and Revenue Receipts.

Premium paid on issue of shares is a capital receipt.

Compensation received for the surrender of a right is a revenue receipt.