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What do you mean by Capital Receipts?

Capital receipts consist of additional payment made to business by proprietors, loans taken and receipts from sale of a fixed assets of business e.g. introduction of fresh capital into the business by proprietor, sale proceeds of an old piece of furniture etc.

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These receipt are non recurring in nature and may indicate incurring of a liability or reduction in the  value of assets. They are taken to Balance sheet. Their utility does not end in one accounting year.

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