Question

Define Capital profit ? Give one example​

Answer 1

Answer:

The amount of profit earned by the business from the sale of its assets, shares, and debentures is capital profit. If assets are sold at a price more than their book values then the excess of book value is capital profit.

Examples of capital profits are an increase in the values of assets through revaluation and the profit from the sale of debentures, sales on premium.

Explanation:

Answer 2

Answer:

Capital Profit and Loss:

Examples of capital profits are an increase in the values of assets through revaluation and the profit from the sale of debentures, sales on premium. Some examples of capital loss are Loss on the sale of the fixed assets, the losses incurred on the debentures, and sales issued at a discount.

Explanation:

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