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Profit below are the figures and the income statement portion for j c.
Revenue profit vs capital profit. Capital and revenue profits and losses. Capital profit is a profit which is earned on the sale of a fixed asset or profit earned on raising capital for a company by issuing shares at premium. Capital profit should be transferred to the capital reserve account. Following are the main differences between capital profit and revenue profit.
Profit arisen from non recurring transactions is called capital profit. Mode of earning capital profit is earned by selling assets shares and debentures at a price more than their book value and face value. When you prepare your company s income statement you include both capital profit and revenue profit for the period. Which appears on the liabilities side of the balance sheet.
The numbers were reported on their 10k annual statement closing on feb. Differences between capital profits and revenue profits with examples capital profits. This is not a regular profit of the business and is not earned in the ordinary trade of the business. You do not however lump them together.
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