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Question
Sale of securities by an investment company is a capital receipt.
Options
True
False
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Solution
This statement is False.
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.
Write any two differences between capital and revenue Receipts.
Money received by sale of machine is a ______.
______ involves creation of liability and is shown on the liabilities side of the balance sheet.
What are revenue receipts?
What do you understand by Turnover?
Amount obtained from a customer previously written off as bad debt is a ______ receipt.
A receipt in substitution of an income is revenue receipt.
Compensation received for the surrender of a right is a revenue receipt.
