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What is the meaning of capital profite and capital reciet?
both are same or any different are there?
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Answer / prasanna11149@yahoo.co.in
A capital receipt is a receipt which is derived from sale
or purchase of capital assets like plant and machinery,
furniture, investment (long term) etc., which shall not be
occuring all the time. A revenue receipts is something
which is earned from daily activities like sale of goods or
purchase of goods etc. A revenue receipts shall be
repetative in nature and shall be shown or credited in the
profit and loss account.
The main difference between revenue receipts and capital
receipts is that revenue receipts are recurring in nature,
which the government can expect to receive year after year,
whereas capital receipts are a kind of one-time income. Eg.
the salary you receive is your revenue receipt and the
income you receive by selling your home is capital receipt
| Is This Answer Correct ? | 16 Yes | 4 No |
Answer / erphan jani khan
Profit earned on the capital invested in the business is
capital profit. Where as capital receipt means income on
sale of assets.
Both are not same. As Income is not a profit just it is a
receipt.
| Is This Answer Correct ? | 8 Yes | 4 No |
Answer / kaushal jha.
The Profit which is earn due to invest Capital or by capital
is called capital prifit and Capital receipt is a receipt
which is not revenue in nature. It may be a long time
distance.
| Is This Answer Correct ? | 4 Yes | 2 No |
CAPITAL PROFIT: a profit that a company makes by selling a capital asset.
CAPITAL RECEIPTS: CAPITAL RECEIPTS is proceeds from the sale of capital assets. They may be used to finance new capital expenditure or repay existing loan debt. Receipts available to finance capital expenditure in future years are normally held in the usable capital receipts reserve.
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / nilesh
capital profit= your invested fixed assets and investment in long term as per income tax rule.this invested fixed assets & investment sales and your make profit on invested capital this capital profit. capital receipt it means invest you cash fund in any assets and your receive against assets this assets is capital receipt
| Is This Answer Correct ? | 0 Yes | 0 No |
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