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A receipt is a capital receipt because. ... ?

<p><strong>(a) The amount is heavy</strong><strong>(b) It is credited to capital account</strong><strong>(c) It relates to fixed assets</strong><strong>(d) It is received not in the regular course of business</strong></p>

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Question ajoutée par VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.
Date de publication: 2014/12/05
Alex Al Yazouri
par Alex Al Yazouri , General Manager , Al Mushref Cooperative Society

I would say (b) It is credited to capital account

Lesley Lanag CMA CPA
par Lesley Lanag CMA CPA , Senior Accountant , Takaful Emarat Insurance (P.S.C)

In my opinion the best answer is D.

 

Capital receipts may come from three (3) sources: Sale of Capital Assets, Sale of Shares or Issuance of Debentures.

 

Option1. Receipts may NOT ALWAYS entail huge amounts even if it comes from sources as mentioned above

Option2. It may be credited to a Capital account, but NOT ALWAYS (as for the case of Sale of fixed assets and issuance of shares)

Option3. It does NOT ALWAYS come from fixed assets

Option4. The nature of capital receipts is non-recurring because they are not received in the normal course of business, unlike revenue receipts.

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
par VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

Answer option:  (d)   >>>>>>>>>>>>>>     It is received not in the regular course of business

Malik Khalid Mahmood
par Malik Khalid Mahmood , Regional Finance Manager , Leosons International FZ LLC

it could be b and d

AHSAN AKHLAQ
par AHSAN AKHLAQ , accounts manager , sapphire plastic pvt ltd

a

FITAH MOHAMED
par FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

ANSWER (d) It is received not in the regular course of business

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