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 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.

Premium received on issue of shares is a ______.

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

Define Capital receipts.

Give three examples of Revenue receipts.

What do you understand by Turnover?

Distinguish between Capital Receipts and Revenue Receipts.

A receipt is a capital receipt because ______.

Sale of securities by an investment company is a capital receipt.