Give three examples of Revenue receipts.

Short Answer

Amount received from the sale of goods. Total sales during the year are called ‘Turnover’.
Interest and dividends received on investments.
Fees and commission received for services rendered.
Rent received from tenants.

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Distinction Between Capital and Revenue Receipts

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Chapter 6 Capital and Revenue Expenditure/Income
QUESTION BANK | Q 4. | Page 92

Distinguish between capital receipt and revenue receipt.

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.

Money received by sale of machine 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.

Define Capital receipts.

What do you understand by Turnover?

Distinguish between Capital Receipts and Revenue Receipts.

A receipt is a capital receipt because ______.

Premium paid on issue of shares is a capital receipt.