The goods worth Rs. 16,000 were lost in fire by M/s Jyoti Limited; however the Insurance claim of Rs. 10,000 was received from the insurance company. Which out of the following is the correct treatment?
1
Capital receipt is Rs. 10,000 and Rs. 16,000 is deferred revenue expenditure
2
Revenue expenditure is Rs. 16,000 and there is no treatment for Rs. 10,000.
3
Revenue expenditure is Rs. 6,000
4
Capital receipt is Rs. 10,000 and revenue expenditure is Rs. 16,000