Advertisements
Advertisements
Question
Non-recurring receipts like additional capital, loan, etc. are ______.
Options
Capital receipts
Revenue receipts
Capital expenditure
Revenue expenditure
Advertisements
Solution
Non-recurring receipts like additional capital, loan, etc. are Capital receipts.
Explanation:
Capital receipts refer to the receipts of a non-recurring nature such as additional capital from owners, loans raised by the firm and money obtained from a sale of fixed assets.
APPEARS IN
RELATED QUESTIONS
Distinguish between capital receipt and revenue receipt.
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.
Money received by sale of machine is a ______.
Premium received on issue of shares is a ______.
Capital receipts are usually obtained in case of a company:
What are revenue receipts?
Distinguish between Capital Receipts and Revenue Receipts.
Amount received on sale of stock-in-trade is a ______ receipt.
Premium paid on issue of shares is a capital receipt.
A receipt in substitution of an income is revenue receipt.
