Advertisements
Advertisements
Question
Amount received on sale of assets is a ______ receipt.
Advertisements
Solution
Amount received on sale of assets is a capital receipt.
RELATED QUESTIONS
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 ______.
______ involves creation of liability and is shown on the liabilities side of the balance sheet.
Give three examples of Revenue receipts.
Distinguish between Capital Receipts and Revenue Receipts.
A receipt in substitution of an income is revenue receipt.
Compensation received for the surrender of a right is a revenue receipt.
Sale of securities by an investment company is a capital receipt.
