Question

Classify the following into Capital and Revenue [Profit / Loss / Expenditure]
(a) Profit made on the sale of an asset.
(b) Spent ₹6,000 as legal expenses for abuse of trade mark.
(c) Loss incurred on the sale of a short-term investment.

Answer 1

Explanation:

(a) Profit made on the sale of an asset.:- Capital profit. (b) Spent ₹6,000 as legal expenses for abuse of trade mark:- Revenue Expenditure. (c) Loss incurred on the sale of a short-term investment:- Revenue Loss.