Mr. X has a shop in which he sells watches. He borrowed a sum of Rs 50,000 from his friend Mr. Y & has gifted a watch to another friend. Will this sum of Rs 50,000 be regarded as a revenue of his business?

Yes, it is revenue

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No, it is not revenue

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Not sure

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None of the above

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Solution

The correct option is C
No, it is not revenue

Taking a loan is a different transaction & gifting a watch is a separate activity. Both of these are not connected. Rs 50,000 has been borrowed & he has not got them in lieu of watch. Hence it is not considered the revenue of the business.

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Mr. X has a shop in which he sells watches. He borrowed a sum of Rs 50,000 from his friend Mr. Y & has gifted a watch to another friend. Will this sum of Rs 50,000 be regarded as a revenue of his business?

The correct option is C No, it is not revenue Taking a loan is a different transaction & gifting a watch is a separate activity. Both of these are not connected. Rs 50,000 has been borrowed & he has not got them in lieu of watch. Hence it is not considered the revenue of the business.

The correct option is C
No, it is not revenue

Taking a loan is a different transaction & gifting a watch is a separate activity. Both of these are not connected. Rs 50,000 has been borrowed & he has not got them in lieu of watch. Hence it is not considered the revenue of the business.