Advertising costs for a major product launch are considered deferred revenue expenditures because the benefits of such campaigns are expected to extend beyond the current accounting period. These costs are initially capitalized and then amortized over several years.

In accounting for replacements, the cost of replacing an asset with one of similar capacity is treated as revenue expenditure (maintenance/repair), while the excess cost for improvements or expansion is treated as capital expenditure. Here, the cost to replace the original capacity is Rs. 600,000, which is classified as revenue expenditure.

Dismantling and demolition charges are generally classified as revenue expenditure. These costs are typically incurred to clear a site or remove an old asset, and they do not provide long-term future economic benefits beyond the current accounting period. Therefore, they are treated as expenses in the period in which they are incurred rather than being capitalized as part of a new asset's cost.

Significant advertising costs for a new product are classified as Deferred Revenue Expenditure. While these costs are revenue in nature, they are expected to provide economic benefits over multiple future accounting periods. Therefore, instead of charging the entire amount to the current year's profit and loss account, the cost is amortized over the period the benefit is expected to be realized.

Research and development costs are often treated as deferred revenue expenditure because they provide benefits over several future accounting periods. While some standards now require immediate expensing, in traditional accounting contexts, they are amortized over the period of expected benefit.

Revenue receipts are those received in the normal course of business operations. Dividends received on investments represent recurring income generated from assets, whereas the sale of investments, borrowing money, and compensation for land acquisition are capital receipts as they relate to assets or liabilities.

Capital expenditure refers to funds used by a company to acquire, upgrade, and maintain physical assets such as property, buildings, or equipment. Unlike revenue expenditure, which is consumed within the current accounting period, capital expenditure provides long-term economic benefits that extend into future accounting periods, thereby justifying its capitalization on the balance sheet.

Legal fees incurred for the acquisition of a fixed asset, such as land, are considered part of the cost of acquiring that asset. Since these costs are necessary to bring the asset into existence or ownership, they are capitalized as capital expenditure rather than being treated as recurring revenue expenses.

Carriage on a new machine is a capital expenditure (4). Legal expenses for a violation are revenue expenditures (2). A government grant for construction is a capital receipt (5). Rent received from subletting is a revenue receipt (1). Thus, the correct mapping is a-4, b-2, c-5, d-1.

Capital expenditure refers to funds used by a company to acquire, upgrade, and maintain physical assets such as property, buildings, or equipment. These expenditures are intended to provide long-term benefits to the business by increasing its productive capacity or efficiency, rather than being consumed within a single accounting period like revenue expenses.