Home › CBSE Class 11 (Commerce) › Accountancy › Depreciation, Provisions and Reserves › Which of these is treated as a capital profit?
Which of these is treated as a capital profit?
APremium on issue of shares
BSales profit of the year
CInterest on bank deposit
DDiscount from supplier
Answer & Solution
Correct answer: A. Premium on issue of shares
Premium on shares is not earned from normal operations, so it goes to capital reserve.
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