The correct answer is Rs. 10 Lakh is a capital receipt and Rs. 10,000 is deferred revenue expenditure. Capital Receipts: The receipts which tend to increase the financial liabilities or reduce the financial asset are called Capital Receipts. These are not of recurring nature. Deferred Revenue Expenditure: The expenses which are incurred in present, but its benefits are expected to be received in the future is called Deferred Revenue Expenditure. This expense could be written off in the same fiscal year or several years. Important PointsRs. 10 Lakh from an issue of further shares will be treated as Capital receipts as it tends to increase the financial liability of the firm. Rs. 10,000 being expenses of the issue will be treated as Deferred Revenue Expenditure as the benefit out of the share issue expenditure is receivable to a reasonable period of time in the future.