Question

Assertion (A) :- Loans raised from Banks and Financial Institutions are categorised under Capital Receipts.
Reason (R) :- Capital Receipts are non-recurring in nature.
(a) Both A and R are correct and R is the correct explanation of A,
(b) Both A and R are correct but R is not the correct explanation of A.
(c) A is correct but R is incorrect.
(d) A is incorrect but R is correct.

Answer 1

Answer:

Option (a) Both A and R are correct and R is te correct explanation of A

Answer 2

The correct Option is (a) Both A and R are correct and R is the correct explanation of A.

• Capital Receipts are Receipts that generate a flow of income in a business. They generate liability and reduce the assets of the organization. Examples of capital Receipts can be loans from the public, Reserve Bank of India or foreign governments.
• These capital Receipts are non-recurring and are shown only once annually in the balance sheet of an organization.