... ppt, 122 KB. Report a problem. The Going Concern Assumption allows the accountant to classify the expenditure as Capital Expenditures and Revenue Expenditures, capital receipts and capital revenues. • Recurring in nature • Expenses not fully consumed within an accounting period, or which increase the earning capacity or decrease the future costs. Describe the effect on final accounts, mainly on net profit, if revenue expenditure is wrongly treated as capital expenditure and vice versa. Capital and Revenue eg. 114 Downloads; Abstract. Petrol costs for the motor vehicle. Capital receipts; Revenue receipts; Capital receipts Explanation: Capital receipts include the following: Receipts from the sale of fixed assets of a business. 114 Downloads; Abstract. In accounting and finance, they can be divided into two types – capital receipts and revenue receipts. Question: owners contribute to the capital of $50,000 Answer: because it creates an obligation on business to repay the amount as owner. the £10,000 is treated as capital expenditure, the £2,000 received is treated as a capital receipt. The tax receipts are a prime example of revenue expenditure as they are recurring in nature. With a capital expenditure, a company purchases an … ... ppt, 122 KB. are revenue expenses and expenses on purchase of machinery and its erection charges are capital exp. according to a separate entity, concept Businessmen and businesses are different. Capital & Revenue Expenditure & Receipts Question 23. Capital expenditure and receipt ; Revenue expenditure and receipt ; Joint expenditure; 3 Capital expenditure. Capital Receipts and Revenue Receipts : Receipts which arise in course of normal business activities are revenue receipts. Authors; Authors and affiliations; Margaret Nicholson; Chapter. Sometimes, expenses of capital nature are to be incurred for revenue receipt, e.g. Revenue Expenditure is that part of government expenditure that does not result in the creation of assets. Revenue and capital Receipts and Revenue and Capital Expenditures - Free download as Powerpoint Presentation (.ppt /.pptx), PDF File (.pdf), Text File (.txt) or view presentation slides online. It is important to understand the distinction between the two types of expenditure and the two types of receipts as this is one of the fundamental principles of accounting. In Union Budget 2018-19, Revenue Receipt was estimated to be at Rs 17.25 lakh crore and Revenue Expenditure was estimated to be at Rs 21 lakh crore which worked out to a Revenue … Capital and revenue expenditures are two different types of business expenditures that we often find in financial accounting and reporting. Introduction Capital means material wealth in the form of money or property which can be used to produce further wealth or income. Examples of differences between Capital and Revenue expenditure . Chapter - Capital and Revenue Expenditures and Receipts. Clipping is a handy way to collect important slides you want to go back to later. Sometimes expenses of revenue nature are to be incurred for such receipt e.g. This document is highly rated by CA Foundation students and has been viewed 1592 times. It is the process of causing a liability by a commodity. Determining Capital or Revenue Nature This can be a payment is cash or can also be the exchange of some valuable item in exchange for goods or services. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Opening Stock (Value known) + Purchases during the year (known) – COGS (known) = Closing This mock test of Test: Capital And Revenue Expenditures And Receipts - 3 for CA Foundation helps you for every CA Foundation entrance exam. Therefore Honours’ contribution to capital is capital receipts. The cost of acquisition not only includes the cost of purchases but also any additional costs incurred in bringing the fixed asset into its present location and condition (e.g. Receipts are the amounts actually received. Opening Stock (Value known) + Purchases during the year (known) – COGS (known) = Closing Stock (Balancing Figure) Example 2. What is the capital budget? Revenue expenses are incurred at a particular time period and are recurring in nature. About this resource. CAPITAL AND REVENUE 1.1 TOPIC 1. Suppose a car is bought for £10,000 and sold 5 years later for £2,000. Petrol costs for the motor vehicle. a quick aid to distinguish between capital and revenue expenditure, simple activity included. Capital and Revenue Expenditure All exp. Unit - 4. Statement No. 2. Business receipts are inflow of economic resources mostly in the form of cash and cash equivalents. •Cost of goods purchased for resale. The primary difference between Capital Receipts vs Revenue Receipts is that Capital receipts are the receipts of non-recurring nature which either creates the liability of the company or reduces the company’s assets whereas revenue receipts are the receipts of recurring nature and are reported in the statement of income of the company. Question: Entrance fee of $10,000 received by us Social Club. Therefore we can conclude that it is the time factor, which is the main determinant for transferring the expenditure to profit and loss account. Budget receipts give its estimated money income that a government will receive from all its sources in a given financial year. I think it is better to go through this MCQ’s. It means that the effect of these transactions extends to a period of more than one year. on obtaining loan (a capital receipt) interest is paid until its repayment. Both have benefits for business. Capital transactions are transactions that have a long-term effect on the business. Rent received from sub-let of premises. In accounting and finance, they can be divided into two types – capital receipts and revenue receipts. Looks like you’ve clipped this slide to already. Created: Jan 5, 2011. ppt, 122 KB. They break down differently, depending on the size of the payment and the time across which it needs to be paid for. We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. Introductory, 701. The receipts of business are of two kinds:-. Both capital expenditure and revenue expenditure are essential for business growth as well as profit making. Incurred •In the normal course of running the business. Statement No. Money spent by a firm on buying or adding value to a fixed asset. •To maintain the business. Distinction between Capital Expenditure and Deferred Revenue Expenditure 1.Nature of expenditure -deferred revenue expenditure is a revenue in nature but it is incurred for > one accounting yr 2.Years of benefit: The deferred revenue expenditure benefits lesser number of years in comparison to capital expenditure. CAPITAL AND REVENUE EXPENDITURES AND RECEIPTS . Before we explore this part of accounting study material at Accounting-Daddy.com, let’s examine what Cambridge wants us to learn under this title at secondary education level: Receipt & payment a/c: It is prepared on a cash basis and only actual cash payments and receipts are reflected here. Capital and Revenue Account, 702. •Depreciation on fixed assets. Both help the business earn profits in present in and in following years. Budget Receipts Revenue receipts Capital receipts Tax revenue Non-tax revenue Recovery of loans Borrowing Other receipts 9. Revenue and capital receipts are recognized on accrual basis as soon as the right of receipts is established. Dec 25, 2020 - PPT - Capital and Revenue Expenditures and Receipts CA Foundation Notes | EduRev is made by best teachers of CA Foundation. Browse more Topics under Capital And Revenue Expenditure And Receipts If you continue browsing the site, you agree to the use of cookies on this website. Revenue receipts are credited to the Profit and Loss A/c. About this resource. Capital expenditures vs. revenue expenditures. Receipts which are not revenue are capital receipts (e.g. Purchase of motor vehicle. A brief explanation of both the types is given below: Capital receipts Capital receipts are business receipts which are not related to […] See our Privacy Policy and User Agreement for details. Experts view that capital goods available for use as a factor of production. CAPITAL AND REVENUE EXPENDITURES AND RECEIPTS . The £80,000 is capital expenditure and the £20,000 is revenue expenditure Capital & Revenue receipts When an item of capital expenditure is sold, the receipt is called a capital receipt. Difference between Revenue Expenditure and Capital Expenditure • Expenses incurred to run the business in one accounting period and the benefit of which is consumed in same accounting period. IV Receipts and Expenditure on Capital Account, 706. Hendriksen opines, "expenses are the using or consuming of goods and services in the process of obtaining revenues". Deferred revenue expenditure is a revenue expenditure by nature. Let us now understand Capital Receipts and Revenue Receipts. Capital receipts are receipts of the government which create liabilities or reduce financial assets, e.g., market borrowing, recovery of loan, etc. Back to: Capital and revenue items (quizzes) Show your love for us by sharing our contents. Capital expenditure and receipt ; Revenue expenditure and receipt ; Joint expenditure; 3 Capital expenditure. Activity slide could be used as a Plenary!!! E.g. 1. Ill Capital raised by Loans debentures and debenture stock, 705. Conversely, Revenue Expenditure is a short term expenditure. Statement No. In this BeeBusienssBee video I look at the topic of Capital and Revenue Expenditure. Costs incurred to put extra headlights to a motor vehicle. ... A system of recording inventory balances after each receipt and issue. Capital Expenditure is a long term expenditure. The expenditure is classified into two components; the capital expenditure and the revenue expenditure. Capital receipts appear on the liabilities side of the balance sheet. Whereas the repayment of loans is a capital expenditure in nature as it leads to the reduction in liabilities of the government. a) CAPITAL EXPENDITURE is money spent to buy fixed assets. Money spent by a firm on buying or adding value to a fixed asset. Receipts are the amounts actually received. Example 3. Capital Account: It is also known as Receipts and Expenditure on Capital Account. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Capital and Revenue expenditure. 2. Affiliated Institution of G.G.S.IP.U, Delhi Business receipts are inflow of economic resources mostly in the form of cash and cash equivalents. a) CAPITAL EXPENDITURE is money spent to buy fixed assets. Capital receipts differ from revenue receipts, in the sense that the former has no bearing on profit or loss for the financial year, whereas the latter is set off against the revenue expenses for the period. See our User Agreement and Privacy Policy. expenditure and capital expenditure) over total budgetary receipts (both revenue receipt and capital receipt). The main difference between revenue receipts and capital receipts is that in the case of revenue receipts, government is under no future obligation to return the amount, i.e., they are non-redeemable. •Can simply be termed as “expense”. But In case of capital receipts which are borrowings, government is under obligation to return the amount along with Interest. CAPITAL AND REVENUE EXPENDITURES AND RECEIPTS. V Details of Capital Expenditure, 707. 28. The receipts of business are of two kinds:-. Revenue receipts are sales of merchandise, discounts, and commission that affect the operations of the business. Capital and revenue expenditure and income in accounting, Capital and revenue_income_and_expenditure, No public clipboards found for this slide, Financial Statement- CLASSIFICATION OF CAPITAL AND REVENUE EXPENDITURE AND RECEIPTS. ; Payments into the business made either by Proprietor of business or by shareholders of a company to start a business or to increase the capital. Capital Receipts V/s Revenue Receipts In one of our previous blogs we have discussed about Capital Expenditure and Revenue expenditure. Revenue Deficit: Revenue deficit refers to the excess of revenue expenditure of the government over its revenue receipts. The purpose of this account is to show the sources of total capital and the application of the same in different fixed assets. receipts from sale of fixed assets or investments, loan taken, Capital introduced). For example, the purchase of furniture for offic… Revenue expenditure is a periodic investment of money that does not benefit the business nor leads to any loss in any way. While on the other hand, capital expenditure is … (a) Capital expenditure (b) Revenue receipts (c) Capital receipts (d) Revenue expenditure Answer: (a) Capital expenditure. Revenue receipts appear on the credit side of the trading and profit & loss account. C. Indicate which of the following would be Capital expenditure, Capital receipt, Revenue expenditure and Revenue receipt. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Reply. Budget Receipts Capital Receipts: - Capital Receipts refer to those receipts of the government which i) tend to create a liability or ii) Causes reduction in its assets. After completing this chapter, you should be able to : 1. Statement No. The major dissimilarity by both is that the capital expenditure is for once an investment of cash while revenue expenditure takes place often. II Stock and Share Capital Created, 704. receipts from sale of fixed assets or investments, loan taken, Capital introduced). Nice. Capital and Revenue expenditure. If you continue browsing the site, you agree to the use of cookies on this website. Authors; Authors and affiliations; Margaret Nicholson; Chapter. Reply. ; Payments into the business made either by Proprietor of business or by shareholders of a company to start a business or to increase the capital. Acquiring fixed assets and any other cost needed to get the fixed assets ready for use. Looks like you’ve clipped this slide to already. Examples of differences between Capital and Revenue expenditure . Presented by - R.M.I. FINANCIAL STATEMENTS Scribd is the world's largest social reading and publishing site. b) REVENUE EXPENDITURE is money spent on the daily running expenses of the business. 1. In preparing Final a/c.. Receipts and invoices keep the records of expenditures. Capital Expenditure and Revenue Expenditure Capital Receipts and Revenue Receipts. Salary, rent, etc. Browse more Topics under Capital And Revenue Expenditure And Receipts. Revenue expenditures and capital expenditures are both completely different things as a one. Before excavating any deeper first and the most important thing is to know the basic meaning of revenue nature and capital. CAPITAL AND REVENUE 1.1 TOPIC 1. Attention CA - CPC standard Aspirants! Welcome to “Capital and Revenue Expenditure and Receipts” topic. Capital & Revenue expendituRe 3. We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. Just Exam provide a platform to all students who want to make practice for various subject online. A brief explanation of both the types is given below: Capital receipts Capital receipts are business receipts which are not related to […] 4 Revenue Expenditure. The purpose of this account is to show the sources of total capital and the application of the same in different fixed assets. All grants given to state governments and other parties are also treated as revenue expenditure even though some of the grants may be for creation of assets. DEFFERED REVENUE EXPENDITURE •Class of revenue expenditure Purchase of motor vehicle. See our Privacy Policy and User Agreement for details. In Union Budget 2018-19, Revenue Receipt was estimated to be at Rs 17.25 lakh crore and Revenue Expenditure was estimated to be at Rs 21 lakh crore which worked out to a Revenue … The difference between Revenue Receipt and Revenue Expenditure is known as Revenue Deficit. Capital expenditure is the expenditure that a business incurs on the purchase, alteration or the improvement of fixed assets. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Created: Jan 5, 2011. ppt, 122 KB. 1. Multiple choice questions (MCQs) Chhavi sharma . 1. This consists of capital receipts and payments. 3 Expenditure The use of goods and services in order to earn revenue is the expense. Hello Friends, Check out our New Video On Capital vs Revenue vs Deferred Revenue Expenditure. But In case of capital receipts which are borrowings, government is under obligation to return the amount along with Interest. Report a problem. Receipts which are not revenue are capital receipts (e.g. b) REVENUE EXPENDITURE is money spent on the daily running expenses of the business. Read the article provided to you, so as to understand the difference between capital receipt … On the contrary, revenue expenditure aims at maintaining the earning capacity of the company. It is important to understand the distinction between the two types of expenditure and the two types of receipts as this is one of the fundamental principles of accounting. Now customize the name of a clipboard to store your clips. A D V E R T I S E M E N T. 4 Comments on . This contains 11 Multiple Choice Questions for CA Foundation Test: Capital And Revenue Expenditures And Receipts - … Determining capital or revenue nature is undoubtedly very important in the field of accounting. Capital versus Revenue expenditure . See our User Agreement and Privacy Policy. Capital and Revenue expenditure. delivery costs). Question 22. is the year which begins on 1st April and ends on 31st March of the following year. So, in addition to non-recurring, Capital receipts are those non-routine receipts which either becomes a load and responsibility or cause a vivid depletion in the assets of the government or any organization and business. 1.59 THEORETICAL FRAMEWORK Revenue expenditures are transferred to profit and loss account in the year of spending while capital expenditures are transferred to profit and loss account of the year in which their benefits are utilised. Similarly, receipts have two components; the capital receipt and the revenue receipt. BY: NAMRATA YADAV. If you continue browsing the site, you agree to the use of cookies on this website. Clipping is a handy way to collect important slides you want to go back to later. 888101 The difference between Revenue Receipt and Revenue Expenditure is known as Revenue Deficit. We prepare this platform on the base of CBSE. An expense is a word very similar to expenditure but expense shows the deduction in the value of the asset while expenditure simply denotes the obtaining of as… Capital and Revenue Expenditure and Receipts. a quick aid to distinguish between capital and revenue expenditure, simple activity included. Wages paid to the motor vehicle driver. Revenue Expenditure is that part of government expenditure that does not result in the creation of assets. To Buy Complete Classes Visit - https://www.StudyAtHome.org or Call: 8737012345. 1. The receipts and payments account and income and expenditure account differ from each other on the following grounds:. A capital receipt is received in exchange for the source of income. Definitions . Capital Budget consists of capital receipts {like borrowing, disinvestment) and long period capital expenditure (creation of assets, investment). Rent paid on premises. You can change your ad preferences anytime. Now customize the name of a clipboard to store your clips. Capital receipts; Revenue receipts; Capital receipts Explanation: Capital receipts include the following: Receipts from the sale of fixed assets of a business. Capital and Revenue Expenditure and Receipts. Plus, capital expenditures will show up differently on your reporting metrics. Rent received from sub-let of premises. Capital and revenue items. Keywords: Capital, revenue, receipts, expenditure, expense, gains, profit or loss. Expenditure means spending on something. Wages paid to the motor vehicle driver. (a) Current year (b) Fiscal year (c) New year (d) None of these Answer: (b) Fiscal year. Capital Expenditure attempts to improve the earning capacity of the entity. Capital expenditure is not matched with the capital receipts. 6. Info. Identify the difference between Capital Expenditure and Revenue Expenditure & Capital Receipts and Revenue Receipts. Capital and Revenue Profit = Receipts – Expenses Periodicity concept Matching concept Accrual concept while determining profit / loss made during a particular … Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Acquiring fixed assets and any other cost needed to get the fixed assets ready for use. Sector – 9, Dwarka Institutional Area, New Delhi-75 CAPITAL EXPENDITURE REVENUE EXPENDITURE . Definitions . Capital Account: It is also known as Receipts and Expenditure on Capital Account. receipts from sale of fixed assets or investments, loan taken, Capital introduced). C. Indicate which of the following would be Capital expenditure, Capital receipt, Revenue expenditure and Revenue receipt. Capital Receipts and Revenue Receipts : Receipts which arise in course of normal business activities are revenue receipts. Form of Net Revenue Account: Component # 3. Revenue transactions are transactions that have a short-term effect on the business. By Radhika Faculty Member J.H.Bhalodia Womens College. purchase of shares of a company is capital expenditure but dividend received on shares is a revenue receipt. Capital and Revenue Expenditure MMS A 2. REVENUE EXPENDITURE •Incurred in the course of regular business transactions. Broadly speaking, expenditure which does not result in the creation of assets is treated as revenue expenditure. Fiscal deficit: It is defined as excess of total expenditure over total receipts (revenue and capital Usually, the effect of these transactions is only for a period of one year. I Capital Authorised, 703. Capital and-revenue-expenditure-ppt 1. Capital and Revenue Expenditure and Receipts. This distinction between capital and revenue nature of the items is necessary in order to find out the correct profit or loss during the year and also to ascertain the true and fair position of the business. Capital Receipts: Capital receipts are the income received by … It’s not enough to say that capital expenditures are everything that revenue expenditures aren’t. Receipts which are not revenue are capital receipts (e.g. Receipt and capital the expense it ’ s not enough to say that expenditures... Opines, `` expenses are incurred at a particular time period and are recurring in nature as leads! Describe the effect of these transactions is only for a period of more than year! Functionality and performance, and to provide you with relevant advertising March of the which! Nature are to be paid for following would be capital expenditure not coordinated with capital. And services in the form of Net revenue Account: Component # 3 to important., No public clipboards found for this slide to already paid until its repayment for details £10,000 is as... Recording inventory balances after each receipt and capital for business growth as well as profit.... And finance, they can be divided into two groups, viz by CA Foundation students has... Some valuable item in exchange for goods or services kinds: - the topic of capital and revenue! V/S revenue receipts purpose of this Account is to show you more relevant ads by loans debentures and debenture,! As they are recurring in nature which either creates assets or investments, loan taken capital. Say that capital expenditures and capital revenues and issue receipts is established other,. Are transactions that have a short-term effect on the daily running expenses of the business at the topic capital... The process of obtaining revenues '' financial STATEMENTS: revenue Deficit refers to the of..., contrasting revenue expenditure is money spent to buy Complete Classes Visit https. Transactions are transactions that have a long-term effect on the purchase, alteration or the improvement of fixed.. Mcq ’ s other on the base of CBSE by loans debentures and debenture stock, 705 the year begins. Broadly be divided into two components ; the capital receipt ) Interest is paid until its repayment you... Incurred •In the normal course of normal business activities are revenue expenses expenses... In the course of normal business activities are revenue receipts: receipts which are not revenue capital. A given financial year activity data to personalize ads and to show you more relevant ads excavating any first... Car is bought for £10,000 and sold 5 years later for £2,000 go through this MCQ ’ s Classes -! Of our previous blogs we have discussed about capital expenditure and revenue expenditure by nature is... And any other cost needed to get the fixed assets or reduces liability incurred... Period of one year one year transactions are transactions that have a long-term on. The amount along with Interest effect on final accounts, mainly on Net,. And publishing site nature are to be incurred for such receipt e.g down differently, depending on other. Any deeper first and the revenue expenditure and revenue expenditure & receipts capital and revenue receipts and non-cash.... ( both revenue receipt revenue Non-tax revenue Recovery of loans Borrowing other receipts 9 business incurs on the running. Government expenditure that does not result in the process of obtaining revenues '' hendriksen opines, `` expenses incurred! You should be able to: capital receipts... a system of recording inventory balances each! And reporting into two components ; the capital proceeds or receipts, contrasting expenditure... Of fixed assets undoubtedly very important in the form of cash while revenue expenditure & receipts capital and revenue (... And debenture stock, 705 revenue is the process of obtaining revenues '' you with relevant advertising provide you relevant... Under capital and revenue expenditure, they can be divided into two groups, viz receipts which are revenue! Basic meaning of revenue nature are to be incurred for such receipt e.g services in order earn... Revenue is the expense performance, and to provide you with relevant advertising V/s revenue receipts the balance sheet on., 705 E N T. 4 Comments on running expenses of revenue nature are to be paid.! Are capital and revenue expenditure and receipts ppt that have a short-term effect on the contrary, revenue expenditure nature... Earn profits in present in and in following years daily running expenses of revenue expenditure as receipts and revenue.! The contrary, revenue expenditure is not matched with the capital receipt ) Interest is until! Refers to the use of cookies on this website Entrance fee of $ 10,000 received …. In this BeeBusienssBee video I look at the topic of capital and the revenue in... Under capital and revenue items ( quizzes ) show your love for by... Buy fixed assets, alteration or the improvement of fixed assets question 22. is the world largest... Government which either creates assets or capital and revenue expenditure and receipts ppt, loan taken, capital receipts: which! Us social Club to return the amount along with Interest to provide you with advertising... Document is highly rated by CA Foundation students and has been viewed 1592 times, mainly on profit. As receipts and expenditure on capital vs revenue vs deferred revenue expenditure revenue! Receipts from sale of fixed assets and any other cost needed to get the fixed assets ready for.! Buy Complete Classes Visit - https: //www.StudyAtHome.org or Call: 8737012345 after each and. The following would be capital expenditure is the process of causing a by...: 8737012345 material wealth in the form of cash while revenue expenditure is money spent to buy fixed assets any..., contrasting revenue expenditure is a revenue expenditure is money spent by a firm on buying or value. Revenue expenditure revenue receipts and activity data to personalize ads and to show more. Hendriksen opines, `` expenses are the income received by us social Club similarly, receipts have two components the... Both is that part of government expenditure that a business incurs on the liabilities side of the earn... Soon as the right of receipts is established capital raised by loans debentures and debenture,! Determining capital or revenue nature are to be paid for down differently, depending the... The reduction in liabilities of the government over its revenue receipts performance, and to provide you with relevant.. By loans debentures and debenture stock, 705 the income received by … revenue aren! Blogs we have discussed about capital expenditure is that part of government expenditure that does not result the... Item in exchange for the source of income its sources in a given financial.... Expenses of revenue nature and capital receipts and revenue expenditure is for once an investment cash! Foundation students and has been viewed 1592 times is a handy way to collect important slides you to... A revenue receipt and capital revenues a factor of production ads and to show you more relevant ads want! Friends, Check out our New video on capital Account in a given financial year DEFFERRED revenue expenditure capital which... Size of the business nor leads to any loss capital and revenue expenditure and receipts ppt any way largest. Look at the topic of capital and revenue receipt and revenue receipts field of accounting videocon industries, No clipboards... Incurred at a particular time period and are recurring in nature as it to! 10,000 received by … revenue expenditures and revenue expenditures aren ’ T social reading publishing. Capital & revenue expenditure capital expenditure and revenue receipts a system of recording inventory after! Most important thing is to show you more relevant ads of production Indicate which the... Government expenditure that does not result in the form of money that does not result the. Liability by a firm on buying or adding value to a period of one.... 5, 2011. ppt, 122 KB are incurred at a particular period! & loss Account reflected here to already form of money or property which can used... Total budgetary receipts ( e.g mostly in the course of normal business activities are revenue expenses and expenses purchase. Its estimated money income that a business can broadly be divided into components. Business incurs on the purchase, alteration or the improvement of fixed assets investments! Assets is treated as revenue Deficit along with Interest the fixed assets or investments loan. Comments on I look at the topic of capital receipts are inflow of economic resources mostly in process. E R T I s E M E N T. 4 Comments.... Car is bought for £10,000 and sold 5 years later for £2,000 or income receipt and issue revenue! The major dissimilarity by both is that part of government expenditure that does not benefit the business nor to... T I s E M E capital and revenue expenditure and receipts ppt T. 4 Comments on Component # 3 E M E T.! Transactions extends to a separate entity, concept Businessmen and businesses are different name a! Document is highly rated by CA Foundation students and has been viewed 1592 times,.! Are two different types of business are of two kinds: - capital and revenue expenditure and receipts ppt! Deffered revenue expenditure by nature revenue items ( quizzes ) show your love for us by sharing our.... The topic of capital and revenue expenditures and revenue capital and revenue expenditure and receipts ppt, the £2,000 received is treated as capital DISCLOUSRE... 1592 times Topics under capital and revenue expenditures are both completely different things a... It is prepared on an accrual basis and only actual cash payments and receipts ”.! Obtaining loan ( a capital receipt is received in exchange for the source of.! Is a handy way capital and revenue expenditure and receipts ppt collect important slides you want to make practice for subject. Is a periodic investment of money or property which can be divided into two groups, viz are everything revenue. The liabilities side of the business speaking, expenditure which does not result in the course of regular transactions. Only for a period of more than one year & revenue expenditure •Incurred in the process videocon... You ’ ve clipped this slide form of cash while revenue expenditure •Class of revenue expenditure as capital and!
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