Capital and revenue receipts
Receipt which is not revenue in nature is called capital receipt. It is
non-recurring in nature. The amount received is normally substantial. It is
shown on the liabilities side of the balance sheet.
·
Proceeds
from issue of shares and debentures
·
Long term
loan raised from bank and other financial institutions
·
Proceeds
of sale of fixed assets
·
Proceeds
of sale of long-term investments
·
Receipt
of special donations
Receipts which are obtained in the normal course of business are called
revenue receipts. It is recurring in nature. The amount received is generally
small.
·
Proceeds
from sale of goods
·
Interest
on investments received
·
Rent
received
·
Dividend
from investment in shares.
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