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Identify the following as revenue receipts or capital receipts . Give reasons : (i) Loan from the IMF . ""(ii) Grants received from World Bank . (iii)Profit tax "" (iv) Sale of shares held by government in Maruti Udyog Limited . (v) Borrowings from public ""(vi) Bus fare . (vii) Fees of government hospital . |
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Answer» Solution :(i) It is a CAPITAL RECEIPT as it CREATES LIABILITY for the government . (ii) It is a revenue receipt as it neither creates any liability nor reduces any asset of the government . (iii) It is a revenue receipt as it neither creates any liability nor reduces any asset of the government . (iv) It is a capital receipt as it reduces assets of the government. (V) It is a capital receipt as it creates liability for the government . (vi) It is a revenue receipt as it neither creates any liability nor reduces any asset of the government . (vii) It is a revenue receipt as it neither creates any liability nor reduces any asset of the government . |
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