The profit earned by a company on which of the following is called Capital Profit?
- Sales of fixed assets
- Sale of goods and services
- Premium on issue of shares
Select the correct option from the codes given below:
Capital Profits are those profits which are not earned in the normal course of the business. Some examples are as follows: Profit on sale of fixed assets; Profit on revaluation of fixed assets; Premium on issue of shares and debentures; Profit on redemption of debentures; Profit earned by the company prior to its incorporation. Reference
This question is a part of GKToday's Integrated IAS General Studies Module