Question

11. Distinguish between :
(a) Capital and Revenue Receipts
12. Distin

Answer 1

The primary difference between Capital Receipts vs Revenue Receipts is that Capital receipts are the receipts of non-recurring nature which either creates the liability of the company or reduces the company’s assets whereas revenue receipts are the receipts of recurring nature and are reported in the statement of income of the company.

Answer 2

Capital receipts are described as the money brought to the business from non operation sources like proceeds from the sale of long terms assets , capital brought by the propertier , sum recived as a loan or form debentures holdes etc . In contrast Revenue Receipt are the results of firm's routine activities during the financial year , which includes sale , commission , interest of investment ।