Question

what is capital profit? what are the source of capital profit? is it available for divided among the shareholders? ​

Answer 1

Answer:

Capital profit is profit earned from sale of fixed assets or when a company issue shares to raise its capital. They are not earned through carrying out the normal business of a company. Revenue profit is profit earned from sale stock-in-trade or services.

Answer 2

Answer:

Hii,

Explanation:

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Capitalization of profits is the use of a corporation's retained earnings (RE) to pay a bonus to shareholders in the form of dividends or additional shares. It is a reward to shareholders, distributed in proportion to the number of shares each owns.

There are ultimately just three main ways companies can raise capital: from net earnings from operations, by borrowing, or by issuing equity capital. Debt and equity capital are commonly obtained from external investors, and each comes with its own set of benefits and drawbacks for the firm.

Profit increases Capital:

As a business makes profits, the amount of capital available with it increases. = Capital at the start of day one + Profit made on day one.

Hope it will help you..

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