{"id":5788,"date":"2022-07-17T06:27:09","date_gmt":"2022-07-17T06:27:09","guid":{"rendered":"https:\/\/commerceiets.com\/?p=5788"},"modified":"2022-07-17T06:27:09","modified_gmt":"2022-07-17T06:27:09","slug":"capital-and-revenue-notes","status":"publish","type":"post","link":"https:\/\/commerceiets.com\/capital-and-revenue-notes\/","title":{"rendered":"CAPITAL AND REVENUE NOTES"},"content":{"rendered":"\n<h5 class=\"wp-block-heading\">CAPITAL AND REVENUE NOTES covers the topic of Difference between Capital and revenue expenditure and Difference between Capital and Revenue receipts.<\/h5>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_72 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/commerceiets.com\/capital-and-revenue-notes\/#QUESTION_What_do_you_understand_by_capital_and_revenue_expenditure_Explain_the_difference_between_these_two\" title=\"QUESTION: What do you understand by capital and revenue expenditure? Explain the difference between these two?\">QUESTION: What do you understand by capital and revenue expenditure? Explain the difference between these two?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/commerceiets.com\/capital-and-revenue-notes\/#QUESTION_%E2%80%9CCapital_expenditure_is_different_from_revenue_expenditure%E2%80%9D_Explain\" title=\"QUESTION: &#8220;Capital expenditure is different from revenue expenditure.&#8221; Explain\">QUESTION: &#8220;Capital expenditure is different from revenue expenditure.&#8221; Explain<\/a><\/li><\/ul><\/nav><\/div>\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"QUESTION_What_do_you_understand_by_capital_and_revenue_expenditure_Explain_the_difference_between_these_two\"><\/span><strong>QUESTION: What do you understand by capital and revenue expenditure? Explain the difference between these two?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>OR<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"QUESTION_%E2%80%9CCapital_expenditure_is_different_from_revenue_expenditure%E2%80%9D_Explain\"><\/span><strong>QUESTION: &#8220;Capital expenditure is different from revenue expenditure.&#8221; Explain<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<h4 class=\"has-text-align-center wp-block-heading\" id=\"capital-expenditure\">CAPITAL EXPENDITURE<\/h4>\n\n\n\n<p>The expenditure incurred by the business enterprise for the purchase of fixed assets or to repay the loan is known as Capital expenditure. This is the expenditure, the benefit of which accrues to the firm for the long time. This expenditure is also done to increase the capacity, efficiency, life span or economy of an existing fixed asset. These expenditures are posted to the Balance Sheet.<\/p>\n\n\n\n<p class=\"has-luminous-vivid-amber-background-color has-background has-medium-font-size\"><strong>ACCORDING TO WLLIAM PICKLES<\/strong><\/p>\n\n\n\n<p class=\"has-medium-font-size\">\u201cCapital expenditure may be regarded as an outlay resulting\nin the increase or acquisition of asset or increase in the earning capacity of\na business.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">The following are regarded as capital expenditure:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Expenditure incurred on acquiring the fixed\nassets as land and building, machinery, furniture etc.<\/li><li>The expenditure incurred on purchase, receipt\nand installation of fixed assets.<\/li><li>The expenditure spent for acquiring the right to\ncarry on the business.<\/li><li>The amount spent for an extension and\nimprovement of fixed asset.<\/li><li>The expenditure for the acquisition of\nintangible asset.<\/li><li>Any legal expense incurred for defending case\nfor protection of fixed asset, rights etc are also known as capital\nexpenditure.<\/li><\/ul>\n\n\n\n<h4 class=\"has-text-align-center wp-block-heading\" id=\"revenue-expenditure\">REVENUE EXPENDITURE<\/h4>\n\n\n\n<p class=\"has-medium-font-size\">The amount spent to conduct the regular business activities\nis known as revenue expenditure. The benefit of this expenditure is received\nfully during an accounting period. All the revenue expenditures are debited to\nTrading and Profit and Loss account. These expenditures do not result in\nincreasing the earning capacity of the business but only helps in maintaining\nthe existing earning capacity.<\/p>\n\n\n\n<p class=\"has-luminous-vivid-amber-background-color has-background has-medium-font-size\"><strong>ACCORDING TO WILLIAM PICKLES<\/strong><\/p>\n\n\n\n<p class=\"has-medium-font-size\">\u201c\u2019Revenue expenditure is such outlay which is necessary for\nthe maintenance of earning capacity including the upkeep of fixed assets in a\nfully efficient state and the normal cost involved in setting, including the\ncost of goods and services of the business to which it relates.\u201d<\/p>\n\n\n\n<p class=\"has-medium-font-size\">The following are regarded as Revenue Expenditure:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Expenditure on purchase of stationery, postage\nand stamps etc.<\/li><li>Expenditure on maintenance of asset i.e. normal\nrepairs.<\/li><li>Expenditure like Rent paid, Wages and Salaries\npaid, Insurance paid etc.<\/li><\/ul>\n\n\n\n<h4 class=\"has-text-align-center wp-block-heading\" id=\"difference-between-capital-and-revenue-expenditure\">DIFFERENCE BETWEEN CAPITAL AND REVENUE EXPENDITURE<\/h4>\n\n\n\n<p class=\"has-medium-font-size\">The capital and revenue expenditure are differentiated to<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Ascertain the true or fair net profit.<\/li><li>Meet the requirements of income tax provisions.<\/li><li>Find out the true and fair position of the business.<\/li><li>Maintain the record on the scientific basis or as per the rules of double entry system.<\/li><\/ul>\n\n\n\n<p class=\"has-luminous-vivid-amber-background-color has-background has-medium-font-size\"><strong>ACCORDING TO RANDALL SCOTT<\/strong><\/p>\n\n\n\n<p class=\"has-medium-font-size\">\u201cBriefly anything which is used up in the ordinary course of\ntrading is revenue expense, whereas anything keep for the permanent use of the\nbusiness for a number of years may be regarded as fixed asset and capital\nexpenditure.\u201d<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>ACCORDING TO G WILKINSON<\/strong><\/p>\n\n\n\n<p class=\"has-medium-font-size\">\u201cCapital expenditure is the expenditure on fixed assets i.e.\nLand, Buildings, Machinery etc. Revenue expenditure is expenditure on items of\nresale and for immediate use i.e. stationery, rent etc.\u201d<\/p>\n\n\n\n<p class=\"has-medium-font-size\">The brief difference between capital and revenue expenditure\nis as follows:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background\" style=\"background-color:#f3f4f5\"><tbody><tr><td><strong>   BASIS OF DIFFERENCE   <\/strong><\/td><td><strong>   CAPITAL EXPENDITURE   <\/strong><\/td><td>   <strong>REVENUE EXPENDITURE   <\/strong><\/td><\/tr><tr><td><strong>   MEANING   <\/strong><\/td><td>\n  The expenditure incurred in acquiring a capital asset or improving\n  the capacity of an existing one, resulting in the increase of life span.\n  <\/td><td>\n  The expenditure incurred in running day to day operations is known as\n  revenue expenditure.\n  <\/td><\/tr><tr><td><strong>   TERM   <\/strong><\/td><td>\n  This expenditure is done for long term.\n  <\/td><td>\n  This expenditure is done for short term.\n  <\/td><\/tr><tr><td><strong>   AMOUNT   <\/strong><\/td><td>\n  The amount of expenditure is large.\n  <\/td><td>\n  The amount of expenditure is relatively small.\n  <\/td><\/tr><tr><td><strong>   CAPITALIZATION   <\/strong><\/td><td>\n  The amount of expenditure is capitalized.\n  <\/td><td>\n  The amount of expenditure is not capitalized.\n  <\/td><\/tr><tr><td><strong>   SHOWN IN   <\/strong><\/td><td>\n  This expenditure is shown in Balance Sheet.\n  <\/td><td>\n  This expenditure is shown in Income Statement i.e. Profit and Loss\n  Account.\n  <\/td><\/tr><tr><td>   <strong>OUTLAY<\/strong>   <\/td><td>\n  This expenditure is non- recurring in nature.\n  <\/td><td>\n  This expenditure is recurring in nature.\n  <\/td><\/tr><tr><td><strong>   BENEFIT   <\/strong><\/td><td>\n  The benefit is incurred for more than one year.\n  <\/td><td>\n  The benefit is enjoyed in current accounting year only.\n  <\/td><\/tr><tr><td><strong>   EARNING CAPACITY   <\/strong><\/td><td>\n  This expenditure is done to improve the earning capacity.\n  <\/td><td>\n  This expenditure is done to maintain the earning capacity.\n  <\/td><\/tr><tr><td><strong>   MATCHING CONCEPT   <\/strong><\/td><td>\n  This expenditure is not matched with capital receipts.\n  <\/td><td>\n  This expenditure is matched with revenue receipts.\n  <\/td><\/tr><\/tbody><\/table><figcaption>CAPITAL AND REVENUE NOTES<\/figcaption><\/figure>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\" id=\"conclusion\">CONCLUSION<\/h2>\n\n\n\n<p class=\"has-medium-font-size\">Capital and Revenue expenditure both are important for the business for earning a profit in the present as well as in subsequent years. Both have their own benefits and drawbacks. In case of capital expenditure an asset has been purchased by the company which generate revenue for upcoming years. On the other hand, no asset is required as such in the case of revenue expenditure.<\/p>\n\n\n\n<!--nextpage-->\n\n\n\n<h5 class=\"wp-block-heading\">CAPITAL AND REVENUE NOTES covers the topic of Difference between Capital and revenue expenditure and Difference between Capital and Revenue receipts.<\/h5>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>QUESTION: &#8220;Capital receipt is different from revenue receipts.&#8221; &#8211; Explain.<\/strong><\/h3>\n\n\n\n<p class=\"has-text-align-center\"><strong>CAPITAL RECEIPT<\/strong><\/p>\n\n\n\n<p>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<p class=\"has-medium-font-size\"><strong>Example:<\/strong> Sale of land for \u20b910,00,000. The sale of land generate the revenue of \u20b910,00,000 which is a capital receipt as it has lead to the decrease in the asset. &nbsp;<\/p>\n\n\n\n<p class=\"has-very-light-gray-background-color has-background has-medium-font-size\"><strong>EXAMPLES<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Amount received from sale of fixed assets or investments.<\/li><li>Capital contributed by the proprietors, partners or money obtained from issue of shares and debentures in case of company.<\/li><li>Amount received by way of loans.<\/li><\/ul>\n\n\n\n<p class=\"has-text-align-center\"><strong>REVENUE RECIEPT<\/strong><\/p>\n\n\n\n<p>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<p>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<p class=\"has-very-light-gray-background-color has-background has-medium-font-size\"><strong>EXAMPLES <\/strong><\/p>\n\n\n\n<p class=\"has-medium-font-size\">The income received from daily and periodic activities of\nbusiness includes all the operations that involve cash into the business like:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The sale of any kind of inventory<\/li><li>Income from services rendered<\/li><li>Different types of discount received from the suppliers<\/li><li>Sale of scrap<\/li><li>Interest received, etc<\/li><\/ul>\n\n\n\n<p class=\"has-text-align-center\"><strong>DIFFERENCE BETWEEN CAPITAL AND REVENUE RECEIPT<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background\" style=\"background-color:#f3f4f5\"><tbody><tr><td><strong>   BASIS OF DIFFERENCE   <\/strong><\/td><td><strong>   CAPITAL RECEIPT   <\/strong><\/td><td><strong>   REVENUE RECEIPT   <\/strong><\/td><\/tr><tr><td><strong>   MEANING   <\/strong><\/td><td>\n  Capital receipt is the income generated from investment and financing\n  activities of the business.\n  <\/td><td>\n  Revenue receipts are the income generated from the operating\n  activities of the business.\n  <\/td><\/tr><tr><td><strong>   NATURE   <\/strong><\/td><td>\n  Capital receipts are non-recurring in nature.\n  <\/td><td>\n  Revenue receipts are reccuring in nature.\n  <\/td><\/tr><tr><td><strong>   AMOUNT   <\/strong><\/td><td>\n  Large amount of funds are involved.\n  <\/td><td>\n  Revenue receipt is generally of small amount in comparison to capital\n  receipt.\n  <\/td><\/tr><tr><td><strong>   SHOWN IN   <\/strong><\/td><td>\n  The capital receipt is shown in the Balance Sheet or Position\n  Statement.\n  <\/td><td>\n  The revenue receipt is recorded at the credit side of Trading or\n  Profit and Loss Account.\n  <\/td><\/tr><tr><td><strong>   RECEIVED IN EXCHANGE OF   <\/strong><\/td><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><td>\n  This is an income.\n  <\/td><\/tr><tr><td><strong>   VALUE OF ASSET OR LIABILITY   <\/strong><\/td><td>\n  Capital Receipt results out the increase in liability or decrease in\n  the asset.\n  <\/td><td>\n  It does not arises out the increase or decrease in asset or\n  liability.\n  <\/td><\/tr><tr><td><strong>   USE FOR DISTRIBUTION AS PROFITS   <\/strong><\/td><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><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><tr><td><strong>   CREATION OF RESERVE FUND   <\/strong><\/td><td>\n  These receipts are not used to create reserve funds.\n  <\/td><td>\n  These receipts are used to create reserve funds.\n  <\/td><\/tr><tr><td><strong>   MATCHING   <\/strong><\/td><td>   The capital receipts are not matched against the <a rel=\"noreferrer noopener\" aria-label=\"capital expenditure (opens in a new tab)\" href=\"https:\/\/commerceiets.com\/capital-expenditure\/\" target=\"_blank\">capital expenditure<\/a>.   <\/td><td>   The revenue receipts are matched against the <a href=\"https:\/\/commerceiets.com\/revenue-expenditure\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"revenue expenditure (opens in a new tab)\">revenue expenditure<\/a> to   find out the profit or loss of the firm.   <\/td><\/tr><\/tbody><\/table><figcaption>CAPITAL AND REVENUE NOTES<\/figcaption><\/figure>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2022\/07\/capital-5b-1.jpg\" alt=\"CAPITAL AND REVENUE NOTES\" class=\"wp-image-5794\"\/><figcaption>CAPITAL AND REVENUE NOTES<\/figcaption><\/figure>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/accounting\/\"><strong>Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/non-profit-organisation\/\"><strong>Non profit organisation<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/depreciation\/\"><strong>Depreciation<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/liquidity-ratios-types\/\"><strong>Liquidity ratios<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/nature-of-accounting\/\"><strong>Nature of Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/receipt-and-payment-account-pdf\/\"><strong>Receipts and Payments Account<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/depreciation-accounting\/\"><strong>Depreciation Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/acid-test-ratio-formula\/\"><strong>Acid Test Ratio<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/benefits-of-accounting\/\"><strong>Benefits of Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/scope-of-accounting\/\"><strong>Scope of accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/hire-purchase-accounting-notes-pdf\/\"><strong>Hire Purchase Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/cash-ratio\/\"><strong>Cash Ratio<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/difference-between-cost-accounting-and-financial-accounting\/\"><strong>Difference between cost accounting and financial accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-financial-accounting-management-accounting-and-cost-accounting\/\"><strong>Financial accounting, cost accounting and management accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-hire-purchase-and-instalment\/\"><strong>Difference between hire purchase and instalment system<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/financial-ratio-analysis\/\"><strong>Financial ratio analysis<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/difference-between-transaction-and-event\/\"><strong>Difference between transaction and event<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/transactions\/\"><strong>Transactions<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/users-of-accounting\/\"><strong>Users of Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/current-ratio-formula\/\"><strong>Ratio analysis<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/limitations-of-accounting-2\/\"><strong>Limitation of Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/capital-expenditure\/\"><strong>Capital Expenditure<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/instalment-system\/\"><strong>Instalment System<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-consignment-and-sale\/\"><strong>Difference between consignment and sale<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/book-keeping\/\"><strong>Book Keeping<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/revenue-expenditure\/\"><strong>Revenue Expenditure<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/reserves-accounting\/\"><strong>Reserves Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-normal-and-abnormal-loss\/\"><strong>Abnormal loss vs normal loss in consignment<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/accountancy\/\"><strong>Accountancy<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-capital-expenditure-and-revenue-expenditure\/\"><strong>Difference between capital and revenue expenditure<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/reserves-accounting\/\"><strong>Provisions&nbsp;<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/treatment-of-loss-on-consignment\/\"><strong>Treatment of loss on consignment<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/accounting-is-an-art-or-science\/\"><strong>Accounting as science or an art<\/strong><\/a><\/td><td><a 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consignment<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/accounting-is-an-art-or-science\/\"><strong>Book keeping vs accountancy<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/capital-receipt\/\"><strong>Capital receipt<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/ifrs\/\"><strong>IFRS<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/departmental-accounting\/\"><strong>Departmental Accounting<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/accounting-is-an-art-or-science\/\"><strong>Accounting vs accountancy<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/revenue-receipt\/\"><strong>Revenue receipt<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/balance-sheet\/\"><strong>Balance Sheet<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/methods-of-departmental-accounting\/\"><strong>Methods of departmental accounting<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/basis-of-accounting\/\"><strong>Basis of Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-capital-and-revenue-receipt\/\"><strong>Difference between capital and revenue receipt<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/profit-and-loss-account\/\"><strong>Profit and loss Account<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/allocation-of-expenses-in-departmental-accounting\/\"><strong>Allocation of expenses in departmental accounting<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/branches-of-accounting\/\"><strong>Branches of accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-accounting-concepts-and-conventions\/\"><strong>Difference between accounting concepts and conventions<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/trading-account\/\"><strong>Trading Account<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/inter-departmental-transfers\/\"><strong>Inter-departmental transfers<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/cash-and-mercantile-system-of-accounting\/\"><strong>Cash and mercantile system of accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/accounting-standards\/\"><strong>Accounting Standards<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/voyage-account\/\"><strong>Voyage Account<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/different-types-of-branches\/\"><strong>Different types of branches<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/accounting-principles\/\"><strong>Accounting Principles<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/objectives-of-accounting\/\"><strong>Objectives of Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/accounting-for-incomplete-voyage\/\"><strong>Accounting for Incomplete Voyage<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-departmental-and-branch-accounting\/\"><strong>Departmental vs Branch accounting<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/golden-rules-of-accounting\/\"><strong>Golden ru\nles of accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/process-of-accounting\/\"><strong>Process of Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/joint-venture\/\"><strong>Joint venture<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/methods-of-branch-accounting\/\"><strong>Methods of branch accounting<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/double-entry-system-of-accounting\/\"><strong>Double entry system of book keeping<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/scope-of-accounting\/\"><strong>Scope of Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-joint-venture-and-partnership\/\"><strong>Joint Venture Vs Partnership<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/incorporation-of-branch-trial-balance\/\"><strong>Incorporation of branch trial balance<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/difference-between-double-single-entry-system\/\"><strong>Double entry vs Single entry system<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-accounting-concepts-and-conventions\/\"><strong>Accounting Concepts vs Accounting conventions<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/methods-of-recording-transactions-in-joint-venture\/\"><strong>Methods of recording transactions in Joint Venture<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/garner-vs-murray-rule\/\"><strong>Garner VS Murray Rule<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/history-of-accounting-pdf\/\"><strong>History of Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-provisions-and-reserves\/\"><strong>Difference between provisions and reserves<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/consignment\/\"><strong>Consignment<\/strong><\/a><\/td><td><\/td><\/tr><\/tbody><\/table><figcaption>CAPITAL AND REVENUE NOTES<\/figcaption><\/figure>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"https:\/\/www.linkedin.com\/in\/kajal-mahajan-7549b2197\/\" target=\"_blank\" rel=\"noreferrer noopener\">CONNECT ON LINKEDIN<\/a><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>CAPITAL AND REVENUE NOTES covers the topic of Difference between Capital and revenue expenditure and Difference between Capital and Revenue receipts. QUESTION: What do you understand by capital and revenue expenditure? Explain the difference between these two? OR QUESTION: &#8220;Capital expenditure is different from revenue expenditure.&#8221; Explain CAPITAL EXPENDITURE The expenditure incurred by the business&#8230;<\/p>\n<p class=\"more-link-wrap\"><a href=\"https:\/\/commerceiets.com\/capital-and-revenue-notes\/\" class=\"more-link\">Read More<span class=\"screen-reader-text\"> &ldquo;CAPITAL AND REVENUE NOTES&rdquo;<\/span> &raquo;<\/a><\/p>\n","protected":false},"author":2,"featured_media":5794,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[253],"tags":[98,294,295,296,99,297],"class_list":["post-5788","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-university-student-notes-for-exams","tag-capital-expenditure","tag-capital-expenditure-vs-revenue-expenditure","tag-capital-receipts","tag-capital-receipts-vs-revenue-receipts","tag-revenue-expenditure","tag-revenue-receipts"],"_links":{"self":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/5788","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=5788"}],"version-history":[{"count":0,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/5788\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media\/5794"}],"wp:attachment":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media?parent=5788"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/categories?post=5788"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/tags?post=5788"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}