Question

Give two examples for capital receipts and two examples for revenue receipts of not–for–

profit organisation​

Answer 1

Answer:

Capital Receipts=Building Fund, Sports Fund

Revenue Receipts=Rent Received, Interest on Investment

Answer 2

Give two examples for capital receipts and two examples for revenue receipts of not - for - profit organisation.

Answer:

Capital receipts: Specific donations for buildings, Library, Sports tournaments, life membership fees, sale of fixed assets.

Revenue receipts: Interest received, Subscription rent, Locker Rent, Commission received.

What are Capital Receipts?

• Such receipts are non recurring in nature.

• Receipts that do not form a part of regular flow of income of a firm are known as Capital Receipts.

• They are added to the Capital fund or shown on the liabilities side, separately.

What are Revenue Receipts?

• Such receipts are recurring in nature.

• Receipts that show regular flow of income of a concern are known as Revenue Receipts.