Question

Distinguish between 'revenue receipts' and 'capital receipts' and give 2 example of each.​

Answer 1

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❥ Receipts are just the opposites of expenses. But without receipts, there may be no existence of the business. Not all receipts directly increase the profits or decrease the loss. But some affect the profit or loss directly.

In this article, we will be talking about capital receipts and revenue receipts. In simple terms, capital receipts don’t affect the profit or loss of the business; for example, we can say that the sale of long-term assets is one sort of capital receipts. But revenue receipts affect the profit or loss of a company. As an example, we can say that the sale of products, the commission received, etc. are revenue receipts.

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