Question

Giving reasons, classify the following into revenue receipts and capital receipts :

    (a)   recovery of loans    (b)  profits of public sector undertakings    (c) borrowings (d) taxation 

    (e)   privatization  of PSUs​

Answer 1

Answer:

1) is the capital receipt as it is reduced asset of government.

2) it is revenue receipt us it neither creates and liability nor reduce any assets of government.

3) it is the capital receipt as it creates liability for the government.

4)it is the capital receipt as it reduce assets of government.

5) it is revenue reciept as it neither creates any assets of government.

6) it is the capital receipt as it creates liability for the government.

7)it is the revenue receipt is it neither creates any liability not reduce any assets of government.

8)it is the capital receipt as it creates liability for the government.

Explanation:

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