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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 Posted / 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 |
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