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प्रश्न
Define Capital receipts.
What is meant by capital receipts?
उत्तर
- 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.
Notes
Students should refer to the answer according to their questions.
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संबंधित प्रश्न
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 ______.
Premium received on issue of shares is a ______.
Fees and commission received for services rendered, interest and dividend received an investment are examples of ______.
Rent received and commission received are examples of ______.
Give two examples of Capital receipts.
What are revenue receipts?
What do you understand by Turnover?
Premium paid on issue of shares is a capital receipt.
