Question

difference between revenue receipt and capital receipt for class 11​

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 income of the company.

Explanation:

hope this is the correct answer to ur question

Answer 2

here are some differences:

[Note: for capital receipt ➡️

for revenue receipt✌]

(1)Meaning: ➡️ Capital Receipts are the income generated from investment and financing activities of the business.

✌Revenue Receipts are the income generated from the operating activities of the business.

(2)Nature: ➡️Non-Recurring

✌Recurring

(3)Term: ➡️Long Term

✌Short Term

(4)Shown in: ➡️Balance Sheet

✌Income Statement

(5)Received in exchange of: ➡️Source of income

✌Income

(6)Value of asset or liability: ➡️Decreases the value of asset or increases the value of liability.

✌Increases or decreases the value of asset or liability.

Explanation:

The main difference between revenue receipts and capital receipts is that in the case of revenue receipts, government is under no future obligation to return the amount,

i.e., they are non-redeemable. But In case of capital receipts which are borrowings, government is under obligation to return the amount along with Interest.

Hope it helps.

:))