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

MCQ

True or False

This statement is False.

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Distinction Between Capital and Revenue Receipts

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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.

Write any two differences between capital and revenue Receipts.

Money received by sale of machine is a ______.

Fees and commission received for services rendered, interest and dividend received an investment are examples of ______.

Give two examples of Capital receipts.

Give three examples of Revenue receipts.

What do you understand by Turnover?

Distinguish between Capital Receipts and Revenue Receipts.

Amount obtained from a customer previously written off as bad debt is a ______ receipt.

Any lump sum receipt is always a capital receipt.