Question

Which of the following represent capital receipt:

(A) Life Membership Subscription

(B) Donation

(C) Subscription

(D) Interest on Investments

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Answer 1

(A) Life Membership Subscription is a capital receipt.

donation only for special purpose is a capital receipt not generally. whereas Interest on Investments and subscription are revenue receipts.

Answer 2

Answer:

Life Membership Subscription

Explanation:

Capital receipts are payments that change the value of financial assets or obligations. Additionally, they discuss incoming financial flows. Capital gains can come from both debt and non-debt sources. A significant portion of capital receipts comes from loans from the Reserve Bank of India (RBI), foreign governments, and the general public.

A capital receipt often has a one-time nature. As a result, the sale of a fixed asset or stock in a company rarely happens occasionally. When shares are sold on a continuing subscription basis, that is one exception. The fact that capital earnings are not produced by the sales of goods or services in the regular course of business is another way to look at them.

They therefore do not result from a business's day-to-day operations.

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