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Wednesday, March 17, 2010

Capital Receipts

Those receipts which are generated in the form of capital is called capital receipts. It denotes the amount received by a firm from the owner or from outsiders like creditors, debenture holders as a loan. It also includes the amount received from the sale of fixed assets.

Some examples of capital revenue are as follows:
  • Amount received by issuing shares and debentures.
  • Amount received from owner as additional capital or share capital.
  • Bank loan.
  • Loan from others financial institutions or persons.
  • Amount received by selling fixed assets.

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