Question

An amount of Rs.25000 spent on a lawyer's fees to defend a suit for infringement of patent rights is_________.

• A. Capital Expenditure
• B. Revenue Expenditure
• C. Deferred Revenue Expenditure
• D. None of the above

Answer 1

The correct option is B Revenue Expenditure

Any expense which is incurred to safeguard the interest of the business are treated as revenue expenditure.

Rs.25000 spent on lawyer's fees to defend the suit for infringement of patent rights is a revenue expenditure.