Capital and Revenue Receipts

Capital receipt is the quantity acknowledged from the sale of property, distribute and debentures. Revenue receipt is the quantity acknowledged from the sale of goods and services. Capital receipt is of non-persistent environment. Revenue receipt is of persistent nature. Capital receipt is revealed on the liabilities side of the balance sheet. Revenue receipt is revealed on the credit side of the buy and sell and profit and loss accounts.

Capital and Revenue Items

Capital and Revenue Items and goods Learning Objectives: Define explain and give examples capital and revenue expenditures, receipts, payments, profits and losses. What is the difference between capital and revenue expenditures? What are the exceptions to the general rule of capital and revenue expenditures?