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प्रश्न
Define Capital receipts.
What is meant by capital receipts?
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उत्तर
- Capital receipts result from the sale of a capital asset and refer to amounts received from proprietors in the form of capital or loans.
- Capital receipts are an item on the balance sheet, not the profit and loss account.
Notes
Students should refer to the answer according to their questions.
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संबंधित प्रश्न
Distinguish between capital and revenue expenditure and state whether the following statements are items of capital or revenue expenditure:
- Expenditure incurred on repairs and whitewashing at the time of purchase of an old building in order to make it usable.
- Expenditure incurred to provide one more exit in a cinema hall in compliance with a government order.
- Registration fees paid at the time of purchase of a building.
- Expenditure incurred in the maintenance of a tea garden which will produce tea after four years.
- Depreciation charged on a plant.
- The expenditure incurred in erecting a platform on which a machine will be fixed.
- Advertising expenditure, the benefits of which will last for four years.
Write any two differences between capital and revenue Receipts.
Money received by sale of machine is a ______.
Fees and commission received for services rendered, interest and dividend received an investment are examples of ______.
Capital receipts are usually obtained in case of a company:
Rent received and commission received are examples of ______.
______ involves creation of liability and is shown on the liabilities side of the balance sheet.
Distinguish between Capital Receipts and Revenue Receipts.
Amount received on sale of stock-in-trade is a ______ receipt.
A receipt in substitution of an income is revenue receipt.
