Question

Donation received for a specific purpose is to be taken as
(1) Capital receipts
(2) Revenue receipts
(3) Capital expenditure
(4) Revenue expenditure

Answer 1

Hey ✌

Donation recieved for a specific purpose is to be taken as:-
1) Capital receipts

thnk u
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Answer 2

Answer:

(1) Capital receipt

Explanation:

Capital receipts describe cash flow that is non-recurring in a business or organization resulting in the creation of a liability. In addition, it reduces any resources that increase capital.

Capital receipts are generated by fixed assets which are the property of the business either tangible or intangible. Another source is company shares and debt instruments such as bank loans. Capital receipts are recorded in the balance sheet and furthermore, they are used to fund the capital expenditure or to pay off other existing business debts.