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Questions
Define Capital receipts.
What is meant by capital receipts?
Definition
Short Answer
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Solution
- 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.
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Notes
Students should refer to the answer according to their questions.
Distinction Between Capital and Revenue Receipts
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Chapter 17: Government Budget - TEST YOURSELF QUESTIONS [Page 344]
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RELATED QUESTIONS
Write any two differences between capital and revenue Receipts.
Premium received on issue of shares is a ______.
Rent received and commission received are examples of ______.
______ involves creation of liability and is shown on the liabilities side of the balance sheet.
Non-recurring receipts like additional capital, loan, etc. are ______.
What are revenue receipts?
Premium paid on issue of shares is a capital receipt.
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.
