Question

state with reason whether the following items are capital or revenue. 1)import duty paid on raw materials purchased 2)loan borrowed from bank 3)commission received 4) money received in raising debenture​

Answer 1

Answer:

1. import duty paid is revenue as paid on goods for sale and purchases

2.loan for bank is a capital item as we use funds in buisness for long term

3. commision is a revenue item as it is received for a short term like for 1 yr or with in 1 yr work