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प्रश्न
Distinguish between capital receipt and revenue receipt.
Distinguish, with the help of example between Capital Receipts and Revenue Receipts.
उत्तर
| Basis | Capital receipt | Revenue receipt |
| Meaning | Capital receipts are the income created by a business's investment and financing activities. | Revenue Receipts refer to the income earned from commercial operations. |
| Nature | Non-recurring in nature. | Recurring in nature. |
| Size | Amount is generally substantial. | Amount is generally smaller. |
| Distribution | These amounts are not available for distribution as profits. | The excess of revenue receipts over the revenue expenses can be used for distribution as profits. |
| Term | Long term | Short term |
Notes
Students should refer to the answer according to their questions.
संबंधित प्रश्न
Distinguish between capital and revenue expenditure and state whether the following statements are items of capital or revenue expenditure:
- Expenditure incurred on repairs and whitewashing at the time of purchase of an old building in order to make it usable.
- Expenditure incurred to provide one more exit in a cinema hall in compliance with a government order.
- Registration fees paid at the time of purchase of a building.
- Expenditure incurred in the maintenance of a tea garden which will produce tea after four years.
- Depreciation charged on a plant.
- The expenditure incurred in erecting a platform on which a machine will be fixed.
- Advertising expenditure, the benefits of which will last for four years.
Write any two differences between:
Capital and Revenue Receipts
Money received by sale of machine is a ______.
Premium received on issue of shares is a ______.
Fees and commission received for services rendered, interest and dividend received an investment are examples of ______.
Capital receipts are usually obtained in case of a company:
A receipt is a capital receipt:
______ involves creation of liability and is shown on the liabilities side of the balance sheet.
Give two examples of Capital receipts.
What are revenue receipts?
Give three examples of Revenue receipts.
Distinguish between Capital Receipts and Revenue Receipts.
Amount received on sale of assets is a ______ receipt.
Amount received on sale of stock-in-trade is a ______ receipt.
A receipt is a capital receipt because ______.
Premium paid on issue of shares is a capital receipt.
Any lump sum receipt is always a capital receipt.
