represent capital receipt is...
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Answer:
Capital receipts are receipts that create liabilities or reduce financial assets. They also refer to incoming cash flows. Capital receipts can be both non-debt and debt receipts.
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Explanation:
Capital receipts are a non-recurring incoming cash flow into your business, which leads to the creation of a liability (a debt to be paid in the future) and a decrease in company assets (resources that lead to capital gain).
Therefore, Contributions into the business by the proprietor, loans taken from banks and amount received on issue of share capital are capital receipts
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