Financial Statements - 1 — Account STD 11 Commerce — Question

 

Capital Receipt

Revenue Receipt

1

It is the amount realised by sale of fixed assets or receipt as capital or loans taken.

Receipt It is the amount realised by sale of goods and/or rendering of services.

2

It is shown in Balance Sheet.

It is shown in Trading Account or Profit and Loss Account.

3

Capital Receipts are normally of non-recurring nature.

Revenue Receipts are normally of recurring nature.

4

Receipts are the receipts which are not received in course of normal business activities.

Revenue Receipts are received in the course of normal trading operations.

5

Capital Receipts are normally not available for payment.

Revenue Receipts, i.e., net of revenue expenses and expired portion of Capital Expenditure/Deferred Revenue Expenditure are available for distribution to the owner of the business.