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Classify the following into Capital and Revenue receipts. Government grant received for ₹ 1,50,000 for setting up a new factory.

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Question

Classify the following into Capital and Revenue receipts.

Government grant received for ₹ 1,50,000 for setting up a new factory.

Classify
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Solution

Capital receipt

Explanation:

Grant given for creating/adding fixed assets (setting up a factory) is capital in nature (used to finance capital expenditure).

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Chapter 6: Capital and Revenue Expenditure/Income - PRACTICAL PROBLEMS [Page 91]

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Goyal Brothers Prakashan Commercial Studies [English] Class 10 ICSE
Chapter 6 Capital and Revenue Expenditure/Income
PRACTICAL PROBLEMS | Q 3. (v) | Page 91
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