Payment of compensation to a worker who has been discharged from service is ___________.

Capital Expenditure

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Revenue Expenditure

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Deferred Revenue Expenditure

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Partly Capital Expenditure

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Solution

The correct option is A Revenue Expenditure
Its a normal expenditure occurred in due course of business. Hence to be treated as revenue expenditure.

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Similar questions

List-I	List-II
I. Compensation paid to retrenched workers of the factory for the loss of service	(a) Capital expenditure
II. Legal expenses incurred in connection with the purchase of a plot of land	(b) Capital receipt
III. Compensation received from the government for the compulsory removal of a business premises to another place	(c) Revenue expenditure
IV. Sale proceeds of merchandise(goods)	(d) Revenue receipt

From the following data about a government budget, find (a) revenue deficit, (b) fiscal deficit, and (c) primary deficit:

Items (Rs in lakh)

(i) Tax revenue 50

(ii) Revenue expenditure 110

(iii) Capital expenditure 210

(iv) Non-tax revenue 30

(v) Capital receipts net of borrowing 140

(vi) Interest payments 20

Cost of obtaining a license to carry out business is a capital expenditure or revenue expenditure?

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