The capital receipts are loans raised by the Government. The loans received from foreign Governments and bodies, disinvestment receipts and recoveries of loans from State and Union Territory Governments and other parties are also part of capital receipts.
- Receipts which are not revenue in nature are capital receipts (e.g. receipts from sale of fixed assets or investments, secured or unsecured loans, owners’ contributions etc.) (For Revenue Receipt refer other article covered at Gurukul Kendra).
- Capital receipts are recognised on accrual basis as soon as the right of receipt is established.
Capital receipts are not directly credited to Profit and Loss Account.
In short, they are –
Receipts due to disposal of permanent assets
Fresh loans raised by the government
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