Question

Give two examples each of capital receipt and revenue receipt.

Answer 1

examples of capital receipts :

1 )Cash received from sale of fixed assets.

2 )Amount of loan received by the company from a bank.

3 )Capital invested in the business by a new partner.

4 )Consideration received by a company through sale of its license to produce a well marketed drug to another company.

examples of revenue receipts :

1 )Revenue received from sale of goods to customers.

2 )Revenue received from provision of services to clients.

3 )Income received as interest on a saving account.

4 )Dividend income received from shares of various companies.

5 )Rental income received by a company.

6 )Bad debts recovered by a company.

7 )Cash discount received from vendors.

8 )Commission income received by a company.