Premium paid on issue of shares is a capital receipt.

MCQ

True or False

This statement is True.

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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 ______.

Premium received on issue of shares is a ______.

Capital receipts are usually obtained in case of a company from:

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?

Amount received on sale of assets is a ______ receipt.