Question

What is the difference between capital receipts and revenue receipts?

Answer 1

Capital Receipts appears on the liabilities side of the Balance Sheet whereas Revenue Receipts appears on the credit side of the Profit and Loss Account as income for the financial year. The capital receipt is received in exchange for the source of income. Unlike revenue received which is a substitution of income.

Answer 2

hii dear!!

here yr answer!!

▪Capital receipts are the income received bythe company which is non-recurring in nature. They are part of the financing andinvesting activities rather than operating activities. The capital receipts either reduces an asset or increases a liability. The receipts can be generated from the following sources:-

▪Issue of Shares:-

#The issue of debt instruments such as debentures..

#Loan taken from a bank or financial institution.

#Government grants...

#Insurance Claim...

#Additional capital introduced by the proprietor.


☆☆Revenue Receipts:-

>>>>>>>>>>>>>>>>>>>>>are the receipts which arise through the core business activities. These receipts are a part of normal business operations that is why they occur again and again however its benefit can been joyed only in the current accounting year as its effect is short term. The income received from the day to day activities of business includes all the operations that bring cash into the business like:-

▪Revenue generated from the sale of inventory..

#Services Rendered..

#Discount Received from the creditors or suppliers..

#Sale of waste material scrap...

#Interest Received..

#Receipt in the form of dividend

#.Rent Received

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