{"id":2113,"date":"2019-07-31T00:59:38","date_gmt":"2019-07-31T00:59:38","guid":{"rendered":"https:\/\/commerceiets.com\/?p=2113"},"modified":"2019-07-31T00:59:38","modified_gmt":"2019-07-31T00:59:38","slug":"difference-between-capital-and-revenue-receipt","status":"publish","type":"post","link":"https:\/\/commerceiets.com\/difference-between-capital-and-revenue-receipt\/","title":{"rendered":"DIFFERENCE BETWEEN CAPITAL AND REVENUE RECEIPT"},"content":{"rendered":"\n

Difference between capital and revenue receipt<\/h1>\n\n\n\n

Before understanding the Difference between Capital and Revenue Receipt, the concept of capital receipt and revenue receipt must be known:<\/p>\n\n\n\n

CAPITAL RECEIPT<\/p>\n\n\n\n

Capital receipt is the amount received by the enterprise which is not revenue in nature and leads to an overall increase in the total capital of the company. Capital receipts generate out of the non-operating activities. It means these receipts do not arise out of the normal course of business.<\/p>\n\n\n\n

REVENUE RECIEPT<\/p>\n\n\n\n

Revenue receipt is the amount received by the business as a\nresult of its core business activity. It leads to increase in the overall\nrevenue of the business. These receipts refers to the sale proceeds of\nmerchandise or fees received for services rendered, discount received,\ncommission received, interest received, discount received on shares.<\/p>\n\n\n\n

Receipt of money in the revenue nature increases the profits or decreases the losses of a business and must be set off against the revenue expenses in order to find out the profit or loss for the period.<\/p>\n\n\n\n

DIFFERENCE BETWEEN CAPITAL AND REVENUE RECEIPT<\/p>\n\n\n\n

BASIS OF DIFFERENCE <\/strong><\/td> CAPITAL RECEIPT <\/strong><\/td> REVENUE RECEIPT <\/strong><\/td><\/tr>
MEANING <\/strong><\/td>\n Capital receipt is the income generated from investment and financing\n activities of the business.\n <\/td>\n Revenue receipts are the income generated from the operating\n activities of the business.\n <\/td><\/tr>
NATURE <\/strong><\/td>\n Capital receipts are non-recurring in nature.\n <\/td>\n Revenue receipts are reccuring in nature.\n <\/td><\/tr>
AMOUNT <\/strong><\/td>\n Large amount of funds are involved.\n <\/td>\n Revenue receipt is generally of small amount in comparison to capital\n receipt.\n <\/td><\/tr>
SHOWN IN <\/strong><\/td>\n The capital receipt is shown in the Balance Sheet or Position\n Statement.\n <\/td>\n The revenue receipt is recorded at the credit side of Trading or\n Profit and Loss Account.\n <\/td><\/tr>
RECEIVED IN EXCHANGE OF <\/strong><\/td>\n The capital receipt is received in exchange of source of income.\n Example: Sale of plant and machinery results in capital receipt.\n <\/td>\n This is an income.\n <\/td><\/tr>
VALUE OF ASSET OR LIABILITY <\/strong><\/td>\n Capital Receipt results out the increase in liability or decrease in\n the asset.\n <\/td>\n It does not arises out the increase or decrease in asset or\n liability.\n <\/td><\/tr>
USE FOR DISTRIBUTION AS PROFITS <\/strong><\/td>\n These are the receipts which are non-recurring in the nature. That is\n why the amount received against these receipts are not available for\n distribution as profits.\n <\/td>\n These are the receipts which are recurring in the nature. That is why\n the amount received against these receipts is available for distribution as\n profits.\n <\/td><\/tr>
CREATION OF RESERVE FUND <\/strong><\/td>\n These receipts are not used to create reserve funds.\n <\/td>\n These receipts are used to create reserve funds.\n <\/td><\/tr>
MATCHING <\/strong><\/td> The capital receipts are not matched against the capital expenditure<\/a>. <\/td> The revenue receipts are matched against the revenue expenditure<\/a> to find out the profit or loss of the firm. <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
Also Study<\/strong><\/td>Also Study<\/strong><\/td>Also Study<\/strong><\/td>Also Study<\/strong><\/td><\/tr>
Accounting<\/strong><\/a><\/td>Non profit organisation<\/strong><\/a><\/td>Depreciation<\/strong><\/a><\/td>Liquidity ratios<\/strong><\/a><\/td><\/tr>
Nature of Accounting<\/strong><\/a><\/td>Receipts and Payments Account<\/strong><\/a><\/td>Depreciation Accounting<\/strong><\/a><\/td>Acid Test Ratio<\/strong><\/a><\/td><\/tr>
Benefits of Accounting<\/strong><\/a><\/td>Scope of accounting<\/strong><\/a><\/td>Hire Purchase Accounting<\/strong><\/a><\/td>Cash Ratio<\/strong><\/a><\/td><\/tr>
Difference between cost accounting and financial accounting<\/strong><\/a><\/td>Financial accounting, cost accounting and management accounting<\/strong><\/a><\/td>Difference between hire purchase and instalment system<\/strong><\/a><\/td>Financial ratio analysis<\/strong><\/a><\/td><\/tr>
Difference between transaction and event<\/strong><\/a><\/td>Transactions<\/strong><\/a><\/td>Users of Accounting<\/strong><\/a><\/td>Ratio analysis<\/strong><\/a><\/td><\/tr>
Limitation of Accounting<\/strong><\/a><\/td>Capital Expenditure<\/strong><\/a><\/td>Instalment System<\/strong><\/a><\/td>Difference between consignment and sale<\/strong><\/a><\/td><\/tr>
Book Keeping<\/strong><\/a><\/td>Revenue Expenditure<\/strong><\/a><\/td>Reserves Accounting<\/strong><\/a><\/td>Abnormal loss vs normal loss in consignment<\/strong><\/a><\/td><\/tr>
Accountancy<\/strong><\/a><\/td>Difference between capital and revenue expenditure<\/strong><\/a><\/td>Provisions <\/strong><\/a><\/td>Treatment of loss on consignment<\/strong><\/a><\/td><\/tr>
Accounting as science or an art<\/strong><\/a><\/td>Accounting Equation<\/strong><\/a><\/td>Single entry system<\/strong><\/a><\/td>Accounting treatment of consignment<\/strong><\/a><\/td><\/tr>
Book Keeping vs accounting<\/strong><\/a><\/td>Deferred Revenue Expenditure<\/strong><\/a><\/td>Difference between statement of affairs and balance sheet<\/strong><\/a><\/td>Joint venture vs consignment<\/strong><\/a><\/td><\/tr>
Book keeping vs accountancy<\/strong><\/a><\/td>Capital receipt<\/strong><\/a><\/td>IFRS<\/strong><\/a><\/td>Departmental Accounting<\/strong><\/a><\/td><\/tr>
Accounting vs accountancy<\/strong><\/a><\/td>Revenue receipt<\/strong><\/a><\/td>Balance Sheet<\/strong><\/a><\/td>Methods of departmental accounting<\/strong><\/a><\/td><\/tr>
Basis of Accounting<\/strong><\/a><\/td>Difference between capital and revenue receipt<\/strong><\/a><\/td>Profit and loss Account<\/strong><\/a><\/td>Allocation of expenses in departmental accounting<\/strong><\/a><\/td><\/tr>
Branches of accounting<\/strong><\/a><\/td>Difference between accounting concepts and conventions<\/strong><\/a><\/td>Trading Account<\/strong><\/a><\/td>Inter-departmental transfers<\/strong><\/a><\/td><\/tr>
Cash and mercantile system of accounting<\/strong><\/a><\/td>Accounting Standards<\/strong><\/a><\/td>Voyage Account<\/strong><\/a><\/td>Different types of branches<\/strong><\/a><\/td><\/tr>
Accounting Principles<\/strong><\/a><\/td>Objectives of Accounting<\/strong><\/a><\/td>Accounting for Incomplete Voyage<\/strong><\/a><\/td>Departmental vs Branch accounting<\/strong><\/a><\/td><\/tr>
Golden ru\nles of accounting<\/strong><\/a><\/td>Process of Accounting<\/strong><\/a><\/td>Joint venture<\/strong><\/a><\/td>Methods of branch accounting<\/strong><\/a><\/td><\/tr>
Double entry system of book keeping<\/strong><\/a><\/td>Scope of Accounting<\/strong><\/a><\/td>Joint Venture Vs Partnership<\/strong><\/a><\/td>Incorporation of branch trial balance<\/strong><\/a><\/td><\/tr>
Double entry vs Single entry system<\/strong><\/a><\/td>Accounting Concepts vs Accounting conventions<\/strong><\/a><\/td>Methods of recording transactions in Joint Venture<\/strong><\/a><\/td>Garner VS Murray Rule<\/strong><\/a><\/td><\/tr>
History of Accounting<\/strong><\/a><\/td>Difference between provisions and reserves<\/strong><\/a><\/td>Consignment<\/strong><\/a><\/td><\/td><\/tr>
<\/td><\/td><\/td><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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CONNECT ON LINKEDIN<\/a><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Difference between capital and revenue receipt Before understanding the Difference between Capital and Revenue Receipt, the concept of capital receipt and revenue receipt must be known: CAPITAL RECEIPT Capital receipt is the amount received by the enterprise which is not revenue in nature and leads to an overall increase in the total capital of the…<\/p>\n

Read More “DIFFERENCE BETWEEN CAPITAL AND REVENUE RECEIPT”<\/span> »<\/a><\/p>\n","protected":false},"author":2,"featured_media":2116,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,11,56],"tags":[105,106],"class_list":["post-2113","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-11-accountancy","category-financial-accounting","category-difference-between","tag-capital-receipt","tag-revenue-receipt"],"_links":{"self":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/2113","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/comments?post=2113"}],"version-history":[{"count":0,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/2113\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media\/2116"}],"wp:attachment":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media?parent=2113"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/categories?post=2113"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/tags?post=2113"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}