Classify the Following Statement as a Revenue Receipt Or Capital Receipt. Give Valid Reasons in Support of Your Answer. Sale of Shares of a Public Sector Undertaking (Psu) to a Private Company, Y Ltd. - Economics

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Classify the following statement as a revenue receipt or capital receipt. Give valid reasons in support of your answer.
Sale of shares of a Public Sector Undertaking (PSU) to a private company, Y Ltd.

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Solution

Sale of shares of a Public Sector Undertaking (PSU) to a private company, Y Ltd. is a capital receipt because it causes a reduction in the government assets.

Concept: Classification of Receipts
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