Explanation
Capital receipts are business receipts which are not related to the day to day business activities of a company. They occur occasionally and provide benefit for a long period of time.
Capital receipts are normally presented in the balance sheet of a company when realized and generally occur as a result of the following events:
1. Sale of fixed assets
2. Issuance of capital in the form of shares
3. issuance of debt instruments
4. Capital contribution by the proprietor.
Therefore, payment into the business by proprietor which is a capital contribution by proprietor in business is a capital receipt.
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