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Question
Write any two differences between:
Capital and Revenue Receipts
Distinguish Between
Solution
| Capital Receipts | Revenue Receipts | |
| (a) | Capital receipts are those received from non-operational activities, i.e., bank loans, debentures, etc. | Revenue receipts are those receipts earned for operational activities, i.e., the sale of goods and services. |
| (b) | It is non-recurring in nature. | It is recurring in nature. |
| (c) | Amount received by way of loans. | Amount received from sale of goods. |
| (d) | Capital raised by an issue of shares and debentures. | Interest and dividend received on investments. |
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Distinction Between Capital and Revenue Receipts
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RELATED QUESTIONS
Distinguish between capital and revenue expenditure and state whether the following statements are items of capital or revenue expenditure:
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