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Question
Mr. Shyam has issued shares and debentures to commence his business. Under which category will this expenditure be classified?
Options
Revenue Expenditure
Capital Expenditure
Deferred revenue expenditure
Capital Receipts
MCQ
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Solution
Capital Receipts
Explanation:
Proceeds from issuing shares and debentures are non‑recurring funds raised to finance the business; they increase owners’/creditors’ capital and are shown on the liabilities side as capital receipts, not revenue.
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