Revenue or capital receipt?

Ritzz (CA Final - Article ) (365 Points)

17 September 2013  

Dear Friends

 

If any concern takes CC limit of Rs. 500000 but he didn't pay the loan amt till due date. after two years he settles the whole amt with only Rs. 300000.

 

The question is:

 

 

Rs. 200000 he earned (500000-300000).whether this receipt is revenue or capital receipt??

 

Regards