Question

Why is payment of interest a revenue expenditure?​

Answer 1

Answer:

Payment of Interest is treated as a Revenue expenditure because it does not lead to any creation of assets or reduces the Liabilities of the Government. ... Subsidies are treated as a Revenue expenditure because it does not lead to any creation of assets or reduces the Liabilities of the Government

Explanation:

Answer 2

$\huge{\underline{\underline{\mathfrak{Answer}}}}$

☞☞ ᴘᴀʏᴍᴇɴᴛ ᴏғ ɪɴᴛᴇʀᴇsᴛ ɪs ᴛʀᴇᴀᴛᴇᴅ ᴀs ᴀ ʀᴇᴠᴇɴᴜᴇ ᴇxᴘᴇɴᴅɪᴛᴜʀᴇ, ʙᴇᴄᴀᴜsᴇ ɪᴛ ɴᴇɪᴛʜᴇʀ ʀᴇᴅᴜᴄᴇs ʟɪᴀʙɪʟɪᴛʏ ᴏғ ᴛʜᴇ ᴘʀᴀʏᴇʀ ɴᴏʀ ᴀᴅᴅs ᴛᴏ ʜɪs ᴀssᴇᴛs.