Categorise the following government receipts into revenue and capital receipts .Give reasons. 1.Loan from the World Bank. 2.Income tax received by government 3.Cash grants -in-aid from foreign countries and international organisations. 4.interest received on loans. 5.Receipts from sale of shares in public sector undertakings.
Dear Student
1. Capital receipt , It increase the liabilities
2. Revenue receipt, they neither create any liability nor any asset of the government.
3. Revenue receipt , they are one time receipt neither create any asset nor liability.
4.Revenue receipt, they are government earning.
5. Capital receipt, they are like disinvestment which reduce government assets.
Regards
1. Capital receipt , It increase the liabilities
2. Revenue receipt, they neither create any liability nor any asset of the government.
3. Revenue receipt , they are one time receipt neither create any asset nor liability.
4.Revenue receipt, they are government earning.
5. Capital receipt, they are like disinvestment which reduce government assets.
Regards