______ involves creation of liability and is shown on the liabilities side of the balance sheet.

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Capital receipts involves creation of liability and is shown on the liabilities side of the balance sheet. Explanation: Capital receipts refer to the receipts of a non-recurring nature such as additional capital from owners, loans raised by the firm and money obtained from a sale of fixed assets. These receipts involve creation of a liability or reduction in the value of fixed assets. Capital receipts are shown on the liabilities side of the Balance Sheet.

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