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State with the reasons whether the following expenses are capital or revenue: Payment made by X Ltd., to Y Ltd. Engaged in a similar business
State with the reasons whether the following expenses are capital or revenue:
- Payment made by X Ltd., to Y Ltd. Engaged in a similar business with a view to stopping the production by Y Ltd. for a period of one year to avoid inventory pile up of X Ltd.
- Interest paid on loan taken for payment of income-tax of the proprietor of the business.
- Damages paid by a transport company to its passengers injured in an accident.
- Expenditure incurred for raising loans.
- Paid dividend to share holders @ 20%.
- Expenses of registration of trade mark.
- Legal expenses incurred in connection with renewal of lease.
- Amount paid towards sales tax liability.
- Commission paid on net profit of the company to agents.
- A transferred property to B on consideration that B should mark an annual payment to A during his life time.
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