Question

Interest received on loan.

Hint:

Revenue receipts are regular inflows that do not impact assets or liabilities, whereas capital receipts involve transactions that alter the financial structure of the government.

Answer 1

{Classification:} Interest received on a loan is classified as a {Revenue Receipt}. {Justification:}
- Revenue receipts are those that neither create liabilities nor lead to a reduction in assets.
- Interest on loans is a recurring income for the government and does not affect its financial assets or liabilities. {Conclusion:} Since interest is a periodic income, it falls under revenue receipts.