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Classify the following into Capital and Revenue receipts. Loan received from a financial institution to expand the business.

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Question

Classify the following into Capital and Revenue receipts.

Loan received from a financial institution to expand the business.

Classify
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Solution

Capital receipt

Explanation:

Borrowings create a change in the liability/capital structure (non‑recurring financing).

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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. (viii) | Page 91
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