recovery of loan is treated as capital receipt because it reduces assets,,but it also increases cash which is teated as - Economics - Government Budget and the Economy

Question

recovery of loan is treated as capital receipt because it reduces
assets,,but it also increases cash which is teated as assets so how
can we say here asset is decreasing plz clear it

Prince Verma · Accepted Answer

Cash is a liquid asset and, when we observe a
reduction in assets of the government due to
capital receipts, we refer to a reduction in
capital assets of the government

recovery of loan is treated as capital receipt because it reduces assets,,but it also increases cash which is teated as assets ..so how can we say here asset is decreasing ..plz clear it