Accounting · Capital and Revenue Receipts
Which of the following scenarios describes a transaction that would be categorized as a Capital Receipt rather than a Revenue Receipt in a banking institution during the financial year 2025?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The bank receives a commission of 5 lakh rupees for acting as an agent for the sale of insurance products.
- 2The bank issues fresh equity shares to the public and receives 2,000 crore rupees to bolster its Tier 1 capital.✓
- 3The bank collects 10 crore rupees as processing fees and documentation charges from new loan applicants.
- 4The bank receives 500 crore rupees as interest from its various retail and corporate loan portfolios during the quarter.
Correct answer
The bank issues fresh equity shares to the public and receives 2,000 crore rupees to bolster its Tier 1 capital.
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