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प्रश्न
Distinguish between capital receipt and revenue receipt.
Distinguish, with the help of example between Capital Receipts and Revenue Receipts.
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उत्तर
| Basis | Capital receipt | Revenue receipt |
| Meaning | Capital receipts are the income created by a business's investment and financing activities. | Revenue Receipts refer to the income earned from commercial operations. |
| Nature | Non-recurring in nature. | Recurring in nature. |
| Size | Amount is generally substantial. | Amount is generally smaller. |
| Distribution | These amounts are not available for distribution as profits. | The excess of revenue receipts over the revenue expenses can be used for distribution as profits. |
| Term | Long term | Short term |
Notes
Students should refer to the answer according to their questions.
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संबंधित प्रश्न
Distinguish between capital and revenue expenditure and state whether the following statements are items of capital or revenue expenditure:
- Expenditure incurred on repairs and whitewashing at the time of purchase of an old building in order to make it usable.
- Expenditure incurred to provide one more exit in a cinema hall in compliance with a government order.
- Registration fees paid at the time of purchase of a building.
- Expenditure incurred in the maintenance of a tea garden which will produce tea after four years.
- Depreciation charged on a plant.
- The expenditure incurred in erecting a platform on which a machine will be fixed.
- Advertising expenditure, the benefits of which will last for four years.
Write any two differences between capital and revenue Receipts.
Money received by sale of machine is a ______.
Premium received on issue of shares is a ______.
Fees and commission received for services rendered, interest and dividend received an investment are examples of ______.
______ involves creation of liability and is shown on the liabilities side of the balance sheet.
Non-recurring receipts like additional capital, loan, etc. are ______.
Define Capital receipts.
Give three examples of Revenue receipts.
What do you understand by Turnover?
Amount received on sale of assets is a ______ receipt.
Amount received on sale of stock-in-trade is a ______ receipt.
A receipt is a capital receipt because ______.
Sale of securities by an investment company is a capital receipt.
