Question
Which among the following is a capital receipt?
The correct answer is
Amount received by way of loans
The correct answer is option 1. Capital receipts include amounts received by way of loans, which are liabilities and not considered income. This is contrasted with revenue receipts like sales revenue or service fees.
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Important Questions from Capital & Revenue Account
Which of the following statement is INCORRECT about capital expenditure?
A company has spent Rs. 20,000 on painting of its building. It should be recorded as
Depreciation on fixed assets is an example of
The amount spent to increase the earning capacity of a business is:
Amount spent on increasing the seating capacity of a cinema hall is called
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