Capital Receipts Example

Capital receipts are those receipts which do not recur often, in simple words these types of receipts do not happen in normal course of business. Take the case of a restaurant, when the restaurant owner sells table or chairs then it is considered as capital receipt because the main business of restaurant owner is related to food and not furniture.  Given below are some of the examples of capital receipts –

  1. Amount received on account of issue of fresh equity capital
  2. Amount received by issue of debentures
  3. Cash received from sale of fixed asset
  4. Cash received from bank loan

These types of receipts are taken to either liability side or asset side and they are not entered into profit and loss account of the company.

0 comments… add one

Leave a Comment

Related pages

examples of securitizationwhat is consignment in accountingcross exchange rate calculationperfect competition tutor2ubill discounting without recoursecharacteristics oligopolymarket skimming strategyfactoring advantagesdisadvantages and advantages of advertisementfree floating currency definitionlifo systemadvantages and disadvantages of international businesshow to record prepaid rent journal entryvaluation of goodwill and sharescrr full formconsignee name meaningdisadvantages of payback periodprepaid expenses meaningadvantages of conglomerate integrationadvantages and disadvantages of autocratic leadershipwhat are some examples of durable and nondurable goodsclean bill discountingdisadvantages of financial statementsbank overdraft advantages and disadvantagespositives of capitalismfeatures of mixed economy systemmixed economies definitionmergers and acquisitions advantages and disadvantagescapital withdrawal journal entryaccounting conventions definitionthe balance of an unearned revenue accountdifference between bearer cheque and order chequewage push inflationskim pricing strategylimitation of capital budgetinghorizontal merger examplesmeaning of forfeitingdiscounting billformat of comparative balance sheetunbilled fees adjusting entryindirect quotationfactoring vs forfaitinglaw of diminishing utilityhow to record unearned revenue journal entryordinary shares advantages and disadvantagesmerger horizontaljournal entry for prepaid rent receivedwhat is crr slrexample of accumulated depreciationautocratic coachingeffectiveness of autocratic leadershipsubstitution and income effect examplescomplementary and substitute goods examplesgaap full formvertical analysis of the balance sheetbenefits of a command economysteps to withdraw cash from atmsupplementary goods and complementary goodsfictitious assets examplesadvantages of pricing strategiesmeaning of regional rural bankscost oriented pricing exampleexamples of inelasticdual aspect concept of accounting with examplesdebit the receiver and credit the givermarginal diminishing utilitydisadvantages of urbanisationwhat are the economic advantages of specializationdebit card advantagesfeatures of capitalism socialism and mixed economythe materiality principlediversifiable riskssubstitute and complementary goodswhat are the characteristics of traditional economyadvantages and disadvantages of commodity exchangedisadvantages of merging companiesjob and process costing