1.

What do you mean by capital receipts? Why are borrowings, recovery of loans and disinvestment treated as capital receipts?

Answer»

Capital receipt is a receipt which either reduces an asset or creates any liability.

Borrowings treated as capital receipts because borrowings create a liability.

Recovery of loans treated as capital receipts because recovery of loans reduces an asset.

Disinvestment treated as capital receipts because disinvestment reduces an asset.



Discussion

No Comment Found

Related InterviewSolutions