capital receipts examples

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 ...

1. What are the main items of capital receipts?
2. What are examples of revenue receipts?
3. Which transaction is a capital receipt?
4. What is an example of a capital expenditure?
5. What are the two sources of capital receipts?
6. Why disinvestment is a capital receipt?
7. What are the 2 types of revenue receipts?
8. What is difference between revenue receipts and capital receipts?
9. What is capital receipt?
10. Is subscription a capital receipt?
11. Is purchase of goods a capital transaction?
12. What is capital transaction?

What are the main items of capital receipts?

Answer

• Answer:
• 3 Main Sources of Capital Receipts.
• The sale of fixed assets, which are tangible or intangible property owned or controlled by your company. ...
• The issuing of debt instruments to your business, such as a bank loan.

What are examples of revenue receipts?

Examples of Revenue Receipts

• Money received for services provided to customers.
• Rent received.
• Discount received from suppliers, vendors or creditors.
• Dividend received.
• Interest earned.
• Commission received.
• Bad-debts recovered(if any)
• Revenue earned by the sale of scrap material or waste etc.

Which transaction is a capital receipt?

In summary, a capital receipt is normally a non-recurring transaction which either increases a liability or decreases an asset, and is dealt with on the balance sheet of the business.

What is an example of a capital expenditure?

Capital expenditures (CAPEX) are a company's major, long-term expenses while operating expenses (OPEX) are a company's day-to-day expenses. Examples of CAPEX include physical assets, such as buildings, equipment, machinery, and vehicles.

What are the two sources of capital receipts?

(i) Open Market (Public); (ii) Reserve Bank of India (RBI); (iii) Foreign governments (like loans from USA, England etc.); (iv) International institutions (like World Bank, International Monetary Fund).

Why disinvestment is a capital receipt?

(D2006, 12C) How? (i) Disinvestment by government means selling a part or whole of its shares of public sector undertakings (e.g., HMT, LIC, and FCI). Funds raised from disinvestment reduce government assets (ii) Recovery of loan is also capital receipt as It reduces government assets.

What are the 2 types of revenue receipts?

For the government, there are two sources of revenue receipts — tax revenues and non-tax revenues.

What is difference between revenue receipts and capital receipts?

Capital Receipts are the income generated from investment and financing activities of the business. Revenue Receipts are the income generated from the operating activities of the business. Decreases the value of asset or increases the value of liability. Increases or decreases the value of asset or liability.

What is capital receipt?

Capital receipts are receipts that create liabilities or reduce financial assets. They also refer to incoming cash flows. Capital receipts can be both non-debt and debt receipts. Loans from the general public, foreign governments and the Reserve Bank of India (RBI) form a crucial part of capital receipts.

Is subscription a capital receipt?

A capital receipt tends to be of a non-continuing nature. Thus, the sale of a fixed asset or shares in a business arises on only an occasional basis. One exception is when shares are sold on an ongoing subscription basis. ... Thus, they do not arise from the operating activities of a business.

Is purchase of goods a capital transaction?

When expenditure is incurred for the purpose of purchasing long-term assets for use in business activities and not meant for resale, it is treated as capital expenditure. It should be useful for more than one accounting period.

What is capital transaction?

Transactions relating to share capital and reserves, long-term debt capital, or fixed assets of a company, as opposed to revenue transactions. For example, the purchase of a building is a capital transaction, while the maintenance of a building is a revenue transaction.