State with the reasons whether the following expenses are capital or revenue:

2. 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.
4. Interest paid on loan taken for payment of income-tax of the proprietor of the business.
6. Damages paid by a transport company to its passengers injured in an accident.
8. Expenditure incurred for raising loans.
10. Paid dividend to share holders @ 20%.
12. Expenses of registration of trade mark.
14. Legal expenses incurred in connection with renewal of lease.
16. Amount paid towards sales tax liability.
18. Commission paid on net profit of the company to agents.
20. A transferred property to B on consideration that B should mark an annual payment to A during his life time.

Answer rating: 100% (QA)

Here are the classifications with reasons 1 Payment made by X Ltd to Y Ltd to stop production Capita... View the full answer