ASSERTION: Capital receipts are shown in the Profit and Loss account. REASONING: Capital expenditure is shown in the Balance Sheet.

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KollegeApply · Accepted Answer

A is false, but R is true. Explanation: The assertion is false because capital receipts are not recorded in the Profit and Loss Account; they are shown on the liabilities side of the Balance Sheet. However, the Reason is true because capital expenditure is capitalised and recorded in the Balance Sheet as an asset.

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