Question : Which of the following statement are true?
- Recovery of loan is a capital receipt.
- Interest received in loans is a capital receipts.
Option 1: Both are true.
Option 2: Both are false.
Option 3: Statement 1 is true, statement 2 is false.
Option 4: Statement 1 is false, statement 2 is true.
Answer (1)
9th Jan, 2024
Correct Answer:
Statement 1 is true, statement 2 is false.
Solution :
Recovery of loan is a capital receipt as it reduces assets of the government.
Interest received on loans is a revenue receipt as it neither create any liability nor reduces any asset of the government.
Hence, Option C is correct.
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