Give two examples of Capital receipts.

Short Answer

Amount received by way of loans.
Capital raised by an issue of shares and debentures.
Amount received from the sale of investments and fixed assets.
Life subscriptions and entrance fees received by a club or association from its members.
Government grants and endowments.

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Distinction Between Capital and Revenue Receipts

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Chapter 17 Government Budget
TEST YOURSELF QUESTIONS | Q 13. (ii) | Page 344

Chapter 6 Capital and Revenue Expenditure/Income
QUESTION BANK | Q 2. (ii) | Page 92

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.

A receipt is a capital receipt:

______ involves creation of liability and is shown on the liabilities side of the balance sheet.

Define Capital receipts.

What are revenue receipts?

Give three examples of Revenue receipts.

Amount received on sale of assets is a ______ receipt.

A receipt is a capital receipt because ______.

Any lump sum receipt is always a capital receipt.