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Cap or rev.... Exp

Accountancy

Insurance claim received on the account of inventory damaged by fire... Whether is this rev or cap exp. Anyone exaplintion with proper understanding......

Balachandar S

CA Inter

★ 59K+

30-Nov-22 19:09

357

Answers (3)

Insurance claim is first of all not expenditure bro. It is revenue receipt.

Vijay K

CA Inter

★ 9K+

30-Nov-22 20:11

Revenue receipt are those which comes from the normal course of business. Eg: sales of goods, etc... Capital receipt like inverse of revenue receipt eg: sales of plant and machinery, disposal of old stocks, etc...

Vijay K

CA Inter

★ 9K+

30-Nov-22 20:14

Insurance receipt is like revenue receipt on account of damaged goods

R Yashwanth Kumar

CA Final

★ 87K+

30-Nov-22 20:36