Why are receipts from taxes categorized as revenue receipts?

+2 votes

asked Mar 18, 2019 in Class 12 by kratos

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+4 votes

answered Mar 22, 2021 by kratos

Best answer

Receipts from taxes are categorized as revenue receipts because they do not create liabilities nor reduction in assets.

P, Q and R were partners in a firm. Their Balance sheet as at 31st March, 2017 was as follows :
P, Q and R were partners in a firm sharing profits in the ratio 3:2:1. Their balance sheet on 31-12-2016 was as follows :
Following is the balance sheet of A, B and C as at 31st March, 2017, who have agreed to share
The Balance sheet of A, B and C who were sharing profits in proportion of their capital, stood as follows on 31st March, 2017 :
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