The distinction between capital and revenue is necessary for the preparation of ___________.

Fund Flow Statement

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Receipts and Payment Account

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Final Accounts

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Cash Flow Statement

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Solution

The correct option is B Receipts and Payment Account
Revenue receipts refer to those receipts which arise in the normal course of busines. It affects the profit and loss of the business.
Capital receipts refers to those receipts which are not revenue in nature. It does not affect the profit and loss account.
Therefore, distinction between capital and revenue is necessary for the preparation of receipts and payments account.

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