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
165
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