1.

Distinguish between Capital Receipts and Revenue Receipts.

Answer»
Capital ReceiptsRevenue Receipts
1. Capital receipts refer to the receipts of a nonrecurring nature such as additional capital from owners, loans raised by the firm and money obtained from a sale of fixed assets.Revenue receipts are the receipts obtained during the normal course of business operation and are of a recurring nature. Sale proceeds of goods and services, interest received, dividend received, rent received are examples of revenue receipts.
2. Capital receipts are shown on the liabilities side of the Balance Sheet.Revenue receipts are credited to the Trading or Profit and Loss Account.



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