The book value of old furniture was Rs. 1,500. It was sold for Rs. 500. The difference is a ___.

A. Revenue expenditure

B. Revenue loss

C. Capital expenditure

D. Capital loss

Details of Mcqs: 

Capital loss is the difference between a lower selling price and a higher purchase price or cost price of an eligible Capital asset, which typically represents a financial loss for the seller. This is distinct from losses from selling goods below cost, which is typically considered loss in business income. For example, if an investor bought a house for $250,000 and sold the house five years later for $200,000, the investor realizes a capital loss of $50,000. For the purposes of personal income tax, capital gains can be offset by capital losses.


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