Classify the following expenditures as capital or revenue expenditure/receipt: (iv) Insurance claim received on account of a machinery damaged by…
CA Foundation · Accounting · RTP · September 2026
Classify the following expenditures as capital or revenue expenditure/receipt: (iv) Insurance claim received on account of a machinery damaged by fire.
Suggested Answer and Working Notes:
Insurance claim received on account of machinery damaged by fire is the compensation received on account of loss of a fixed asset. Hence it is a Capital receipt .
Topics: Capital and Revenue Expenditures and Receipts
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