Question

government grant received by the municipal corporation is
a) revenue receipt
b) capital receipt
c) liability
d)none of the above​

Answer 1

Answer:

c)liability

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Answer 2

It is a Revenue Receipt

Explanation:

• The receipts that are received by an entity on a recurring basis are known as revenue receipts.
• Such receipts are received in the ordinary course of business.
• In the case of municipal corporation, the major source of revenue includes funds received from government which can be in the way of government grants as well.
• Hence grant received from govt. by the municipal corporation is a kind of revenue receipt.