Advertisements
Advertisements
Question
Classify the following into Capital and Revenue receipts.
Insurance claim received for ₹ 13,500 for damages to machinery.
Classify
Advertisements
Solution
Revenue receipt
Explanation:
Compensation for damage in the course of business is treated as an operating/other income (recurring/adjustment to revenue), not a fresh capital infusion.
shaalaa.com
Is there an error in this question or solution?
Chapter 6: Capital and Revenue Expenditure/Income - PRACTICAL PROBLEMS [Page 91]
