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Capital Receipts |
Revenue Receipts |
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(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 |
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(b) Appears as capital or liabilities in the Balance Sheet |
(b) Credited as revenue to Trading and Profit & Loss Account |
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© 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. |