The correct answer is Revenue expenditure is Rs. 6,000. 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. Revenue Expenditure: These are those expenditures that are incurred in the normal course of business. These expenditures are for the short term and are recurring in nature. These also include the losses incurred in normal business activity. Goods lost by fire are Revenue expenditures up to the amount of actual loss incurred. Since goods worth Rs. 16000 were lost from fire but the claim of Rs. 10000 was received from Insurance company, so actual loss incurred was Rs. 6000. So, Rs. 6000 is Revenue Expenditure. Additional InformationDeferred Revenue Expenditure: The expenses which are incurred in present, but its benefits are expected to be received in future is called Deferred Revenue Expenditure. This expense could be written off in the same fiscal year or several years.