Answer to Question #134326 in Accounting for Sumit

Question

Give four examples of capital profit.

Answer 1

Capital profits are profits that do not arise from normal business operations. Examples include:

1. Profits earned on the disposal of fixed assets

2. Premium earned on the issue of securities: shares and debentures

3. Discount earned on the redemption of securities

4. Profits earned on the absorption of another firm

5. Profits prior to incorporation

Reference

https://www.googlesir.com/capital-profits-and-revenue-profits-with-examples/