NEWS

Difference between capital and revenue receipts



CAPITAL RECEIPTS
REVENUE RECEIPTS
1. Source:-
Capital receipt is the amount received from the sale of:-
            Assets,
            Shares and 
            Debentures.
Revenue receipt is the amount received from the sale of:-
            Goods and 
            Services.
2. Nature:-
Capital receipt is of non-recurring nature.
Revenue receipt is of recurring nature.
3. Impact:-
Main items of capital receipt are capital and loan, which affect financial position of the business.
Main items of revenue receipt are sale of merchandise, discount and commission, which affect operating results of the business.
4. Treatment:-
Capital receipt is shown on the liabilities side of the balance sheet.
Revenue receipt is shown on the credit side of the trading and profit and loss accounts.

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