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.