Quick Answer: What Are The Sources Of Capital Receipts?

Which of the following is not a revenue receipt?

Government grants are those which are not a revenue receipt since they are only operated in grating the financial resources to the people in order to uplift them while others deal as a receiver of some amount of money with the normal business operations..

What is revenue receipt example?

Common examples of revenue receipts Income received as interest on a saving account. Dividend income received from shares of various companies. Rental income received by a company. Cash discount received from vendors.

Which one of these is revenue expenditure?

Revenue Expenditure is that part of government expenditure that does not result in the creation of assets. Payment of salaries, wages, pensions, subsidies and interest fall in this category as revenue expenditure examples.

What are the sources of revenue receipts?

Non-tax revenue consists of all receipts from sources other than taxes as shown in that chart.Components or sources of revenue receipts are explained below: … It comprises the following items:(i) Interest: … (ii) Profits and Dividends: … (iii) Fees and Fines: … (iv) Special Assessment: … These are the following:

Is escheat a revenue receipt?

Escheats is an example of revenue receipts because revenue receipts refer to those money receipts which does not create a liability for the government or cause reduction in assets of the government.

Why disinvestment is capital receipt?

raises funds either by incurring a liability or by disposing off its assets, it is called a capital receipt. … Funds raised from disinvestment reduce government assets (ii) Recovery of loan is also capital receipt as It reduces government assets.

What is capital receipt example?

Examples of debt capital receipts: Market loans, issuance of special securities to public-sector banks, issue of securities, short-term borrowings, treasury bills, securities against small savings, state provident funds, relief bonds, saving bonds, gold bonds, external debt, etc, are all example of debt capital …

What are the two sources of capital receipts?

3 Main Sources of Capital Receipts The sale of shares in the business, including both common and preferred stock. (Learn more about issuing shares for your business.) The issuing of debt instruments to your business, such as a bank loan.

What are the main components of the capital receipts?

Capital Receipts include market loans, external loans, small savings, Government Provident Funds, Accretions to various Deposit Accounts, Depreciation and Reserve Funds of various departments like Railways. The Capital receipts are of two types viz. Debt receipt and non-debt receipts.

Which one of the following is a source of capital receipt?

Disinvestment, that is, sale of public properties to the private organization is an example of capital receipt because capital receipts refers to those money receipts which either create a liability for the government or cause reduction in assets of the government.

Which of the following is not a source of capital receipt?

Capital receipts: This is the income flow from the sale of fixed assets, cash from the sale of shares in the business, cash from the issuance of a debt instrument which includes loans and bonds. The sale of goods and services is not a capital receipt.

Is entrance fee a capital receipt?

v. CIT [1961] 41 ITR 495, the entrance fees received from the members are not capital receipts but revenue receipts and are taxable as income of the assessee-club.

What is company’s capital cost?

Cost of capital is the required return necessary to make a capital budgeting project, such as building a new factory, worthwhile. … It refers to the cost of equity if the business is financed solely through equity, or to the cost of debt if it is financed solely through debt.

What is the difference between capital receipt and revenue receipt?

The primary difference between Capital Receipts vs Revenue Receipts is that Capital receipts are the receipts of non-recurring nature which either creates the liability of the company or reduces the company’s assets whereas revenue receipts are the receipts of recurring nature and are reported in the statement of …