Which of the following situation shows capital account surplus:
[0.80 marks]
A
Capital A/c payments = Capital A/c Receipts
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B
Capital A/c payments ; Capital A/c Receipts
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C
Capital A/c payments; Capital A/c Receipts
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D
Current A/c payments; Capital A/c Receipts
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Solution
The correct option is B Capital A/c payments ; Capital A/c Receipts Balance of Capital Account is = Capital Account Receipts; Capital Account Payments If Capital A/c payments are less than Capital A/c Receipts, it is known as Capital Account Surplus.