Difference Between Capital Receipts And Revenue Receipts

November 18th, 2007 Comments off
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Capital Receipts

Revenue Receipts

(a) Receipts derived from activities which are not part of the normal trading activities of the business

(a) Receipts related to NORMAL ACTIVITIES of the business

(b) Appears as capital or liabilities in the Balance Sheet

(b) Credited as revenue to Trading and Profit & Loss Account

© Examples: receipts of cash brought in by partners, shareholders, debenture holders and bank loans

©   Examples: receipts from sales of goods and services, rent, commission and interest on bank deposits received by the business.

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Financial Accounting


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