A receipt in substitution of a source of income is a ____________.

Deferred revenue receipts

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Revenue receipts

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Capital receipts

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

None of the above

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is D Capital receipts
An amount received in replacement of a source of income is a capital receipt, for example compensation received for termination of services. In this receipt receiver is getting lumpsum payment and revenue receipts are ceased thereafter and hence, it is a capital receipt.

Suggest Corrections

Similar questions

Receipts and Payments A/c is a summary of -

Receipts and Payments A/c is a summary of ___

Join BYJU'S Learning Program