what are the main item of capital receipt?
Answers
Answer:
The Capital Budget consists of capital receipts and capital payments. The capital receipts are loans raised by the Government from the general public. The loan thus raised is termed as market loans, or borrowings by the Government from the Reserve Bank of India and other parties through the sale of Treasury Bills.
Explanation:
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Answer:
Capital receipts are a bit of a different story, and understanding them requires some knowledge of the basic function of the accounting equation, the balance sheet, and debits and credits.
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)
3 Main Sources of Capital Receipts
The sale of fixed assets, which are tangible or intangible property owned or controlled by your company. Fixed assets are not as readily liquidated (converted to cash) as other assets (such as a company bank account).
The sale of shares in the business, including both common and preferred stock.
The issuing of debt instruments to your business, such as a bank loan.