Advertisements
Advertisements
Question
Give three examples of Revenue receipts.
Answer in Brief
Advertisements
Solution
- Amount received from sale of goods. Total sales during the year are called 'Turnover'.
- Interest and dividend received on investments.
- Fees and commission received for services rendered
- Rent received from tenants.
shaalaa.com
Distinction Between Capital and Revenue Receipts
Is there an error in this question or solution?
RELATED QUESTIONS
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.
Capital receipts are usually obtained in case of a company:
Give two examples of Capital receipts.
Amount received on sale of stock-in-trade is a ______ receipt.
A receipt is a capital receipt because ______.
Premium paid on issue of shares is a capital receipt.
A receipt in substitution of an income is revenue receipt.
Compensation received for the surrender of a right is a revenue receipt.
Any lump sum receipt is always a capital receipt.
