Question

difference between capital receipt and revenue receipt​

Answer 1

Answer:

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 .

Answer 2

Revenue Receipts

1. Receipts that neither reduce assets nor increase liabilities
2. It includes tax & non tax revenue like income tax sales tax
3. It is a regular receipts.

Capital Receipts

1. Receipts that either reduce assets or increase liability
2. Recovery of loans. Borrowings & disinvestment
3. It is a regular receipt. It is irregular in nature