After completing this chapter, you should be able to : 1. Similarly, receipts have two components; the capital receipt and the revenue receipt. Definitions . Let us now understand Capital Receipts and Revenue Receipts. Therefore Honours’ contribution to capital is capital receipts. Capital receipts appear on the liabilities side of the balance sheet. While on the other hand, capital expenditure is … In this BeeBusienssBee video I look at the topic of Capital and Revenue Expenditure. Statement No. 114 Downloads; Abstract. and receipts of a business can broadly be divided into two groups, viz. 1. Acquiring fixed assets and any other cost needed to get the fixed assets ready for use. Opening Stock (Value known) + Purchases during the year (known) – COGS (known) = Closing Activity slide could be used as a Plenary!!! are revenue expenses and expenses on purchase of machinery and its erection charges are capital exp. receipts from sale of fixed assets or investments, loan taken, Capital introduced). Both help the business earn profits in present in and in following years. What is the capital budget? 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. •Depreciation on fixed assets. Deferred revenue expenditure is a revenue expenditure by nature. The major dissimilarity by both is that the capital expenditure is for once an investment of cash while revenue expenditure takes place often. Capital Receipts: Capital receipts are the income received by … Budget receipts give its estimated money income that a government will receive from all its sources in a given financial year. Capital and Revenue expenditure. • Recurring in nature • Expenses not fully consumed within an accounting period, or which increase the earning capacity or decrease the future costs. V Details of Capital Expenditure, 707. The purpose of this account is to show the sources of total capital and the application of the same in different fixed assets. Let us take a brief look. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. B.COM(H) It means that the effect of these transactions extends to a period of more than one year. REVENUE EXPENDITURE •Incurred in the course of regular business transactions. Capital Receipts V/s Revenue Receipts In one of our previous blogs we have discussed about Capital Expenditure and Revenue expenditure. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. E.g. Distinguish between capital and revenue expenditure 2. expenditure and capital expenditure) over total budgetary receipts (both revenue receipt and capital receipt). 2. IV Receipts and Expenditure on Capital Account, 706. 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 … Cash and non-cash transactions. Receipts which are not revenue are capital receipts (e.g. In accounting and finance, they can be divided into two types – capital receipts and revenue receipts. 6. Capital and revenue items. Info. Incurred •In the normal course of running the business. Capital and revenue expenditures are two different types of business expenditures that we often find in financial accounting and reporting. ; 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 AND REVENUE EXPENDITURES AND RECEIPTS . Capital and Revenue expenditure. Opening Stock (Value known) + Purchases during the year (known) – COGS (known) = Closing Stock (Balancing Figure) Capital and Revenue Account, 702. Receipts which are not revenue are capital receipts (e.g. Money spent by a firm on buying or adding value to a fixed asset. Statement No. Introduction Capital means material wealth in the form of money or property which can be used to produce further wealth or income. Statement No. This contains 11 Multiple Choice Questions for CA Foundation Test: Capital And Revenue Expenditures And Receipts - … By Radhika Faculty Member J.H.Bhalodia Womens College. Receipt & payment a/c: It is prepared on a cash basis and only actual cash payments and receipts are reflected here. Wages paid to the motor vehicle driver. Question 22. is the year which begins on 1st April and ends on 31st March of the following year. For example, the purchase of furniture for offic… 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. ... ppt, 122 KB. Capital transactions are transactions that have a long-term effect on the business. Revenue Expenditure is that part of government expenditure that does not result in the creation of assets. Revenue Expenditure is that part of government expenditure that does not result in the creation of assets. Statement No. Ill Capital raised by Loans debentures and debenture stock, 705. Purchase of motor vehicle. C. Indicate which of the following would be Capital expenditure, Capital receipt, Revenue expenditure and Revenue receipt. (a) Capital expenditure (b) Revenue receipts (c) Capital receipts (d) Revenue expenditure Answer: (a) Capital expenditure. DEFFERED REVENUE EXPENDITURE •Class of revenue expenditure Rent received from sub-let of premises. 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. the £10,000 is treated as capital expenditure, the £2,000 received is treated as a capital receipt. Report a problem. Examples of differences between Capital and Revenue expenditure . Looks like you’ve clipped this slide to already. Authors; Authors and affiliations; Margaret Nicholson; Chapter. Business receipts are inflow of economic resources mostly in the form of cash and cash equivalents. Receipts and invoices keep the records of expenditures. CAPITAL AND REVENUE 1.1 TOPIC 1. Capital Account: It is also known as Receipts and Expenditure on Capital Account. Expenditure means spending on something. Rent received from sub-let of premises. Revenue expenses are incurred at a particular time period and are recurring in nature. Question: owners contribute to the capital of $50,000 Answer: because it creates an obligation on business to repay the amount as owner. 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… Chapter - Capital and Revenue Expenditures and Receipts. on obtaining loan (a capital receipt) interest is paid until its repayment. 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. If you continue browsing the site, you agree to the use of cookies on this website. Usually, the effect of these transactions is only for a period of one year. A capital receipt is received in exchange for the source of income. The receipts of business are of two kinds:-. 28. 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. It is the process of causing a liability by a commodity. Fiscal deficit: It is defined as excess of total expenditure over total receipts (revenue and capital business expense that is made to acquire an asset or to improve the capacity of an asset 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. C. Indicate which of the following would be Capital expenditure, Capital receipt, Revenue expenditure and Revenue receipt. Sector – 9, Dwarka Institutional Area, New Delhi-75 Salary, rent, etc. 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 … Purchase a building Rent a building Now customize the name of a clipboard to store your clips. Revenue expenditure is a periodic investment of money that does not benefit the business nor leads to any loss in any way. Read the article provided to you, so as to understand the difference between capital receipt … We prepare this platform on the base of CBSE. Wages paid to the motor vehicle driver. Petrol costs for the motor vehicle. We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. Hendriksen opines, "expenses are the using or consuming of goods and services in the process of obtaining revenues". Revenue transactions are transactions that have a short-term effect on the business. Capital expenditure is not matched with the capital receipts. Sometimes expenses of revenue nature are to be incurred for such receipt e.g. This consists of capital receipts and payments. We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. Acquiring fixed assets and any other cost needed to get the fixed assets ready for use. 1. 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. •Cost of goods purchased for resale. Capital and Revenue Expenditure MMS A 2. It’s not enough to say that capital expenditures are everything that revenue expenditures aren’t. See our User Agreement and Privacy Policy. Form of Net Revenue Account: Component # 3. If you continue browsing the site, you agree to the use of cookies on this website. Capital expenditure is the expenditure that a business incurs on the purchase, alteration or the improvement of fixed assets. Form of Net Revenue Account: Component # 3. Capital & Revenue Expenditure & Receipts 4 Revenue Expenditure. 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. Plus, capital expenditures will show up differently on your reporting metrics. Capital Account: It is also known as Receipts and Expenditure on Capital Account. ... A system of recording inventory balances after each receipt and issue. Capital and Revenue expenditure. 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. (a) Current year (b) Fiscal year (c) New year (d) None of these Answer: (b) Fiscal year. Capital Receipts and Revenue Receipts : Receipts which arise in course of normal business activities are revenue receipts. Info. Capital Budget consists of capital receipts {like borrowing, disinvestment) and long period capital expenditure (creation of assets, investment). Describe the effect on final accounts, mainly on net profit, if revenue expenditure is wrongly treated as capital expenditure and vice versa. A brief explanation of both the types is given below: Capital receipts Capital receipts are business receipts which are not related to […] Capital versus Revenue expenditure . Capital & Revenue expendituRe 3. Capital expenditure not coordinated with the capital proceeds or receipts, contrasting revenue expenditure, which coordinated the revenue proceeds. Clipping is a handy way to collect important slides you want to go back to later. Capital and Revenue eg. Capital receipts; Revenue receipts; Capital receipts Explanation: Capital receipts include the following: Receipts from the sale of fixed assets of a business. Before excavating any deeper first and the most important thing is to know the basic meaning of revenue nature and capital. The receipts and payments account and income and expenditure account differ from each other on the following grounds:. 2. Capital Expenditure and Revenue Expenditure Capital Receipts and Revenue Receipts. Welcome to “Capital and Revenue Expenditure and Receipts” topic. This document is highly rated by CA Foundation students and has been viewed 1592 times. Experts view that capital goods available for use as a factor of production. Hello Friends, Check out our New Video On Capital vs Revenue vs Deferred Revenue Expenditure. delivery costs). 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. 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. 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. Capital expenditure includes costs incurred on the acquisition of a fixed asset and any subsequent expenditure that increases the earning capacity of an existing fixed asset. Income & expenditure a/c: It is prepared on an accrual basis and includes both cash and non-cash transactions. Determining capital or revenue nature is undoubtedly very important in the field of accounting. Multiple choice questions (MCQs) Chhavi sharma . Capital Receipts and Revenue Receipts : Receipts which arise in course of normal business activities are revenue receipts. •To maintain the business. To Buy Complete Classes Visit - https://www.StudyAtHome.org or Call: 8737012345. About this resource. This mock test of Test: Capital And Revenue Expenditures And Receipts - 3 for CA Foundation helps you for every CA Foundation entrance exam. Costs incurred to put extra headlights to a motor vehicle. Capital Expenditure attempts to improve the earning capacity of the entity. purchase of shares of a company is capital expenditure but dividend received on shares is a revenue receipt. Capital and-revenue-expenditure-ppt 1. Whereas the repayment of loans is a capital expenditure in nature as it leads to the reduction in liabilities of the government. Costs incurred to put extra headlights to a motor vehicle. CAPITAL EXPENDITURE REVENUE EXPENDITURE . A D V E R T I S E M E N T. 4 Comments on . Affiliated Institution of G.G.S.IP.U, Delhi Examples of differences between Capital and Revenue expenditure . Capital and Revenue Expenditure and Receipts. Btl activations & process of videocon industries, No public clipboards found for this slide. 1. Syed alfaz . 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. If you continue browsing the site, you agree to the use of cookies on this website. If you continue browsing the site, you agree to the use of cookies on this website. II Stock and Share Capital Created, 704. 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. Definitions . ... ppt, 122 KB. Revenue receipts are sales of merchandise, discounts, and commission that affect the operations of the business. Capital Expenditure is a long term expenditure. Looks like you’ve clipped this slide to already. The Going Concern Assumption allows the accountant to classify the expenditure as Capital Expenditures and Revenue Expenditures, capital receipts and capital revenues. The expenditure is classified into two components; the capital expenditure and the revenue expenditure. Business receipts are inflow of economic resources mostly in the form of cash and cash equivalents. Capital and Revenue Expenditure and Receipts. 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. 1. See our Privacy Policy and User Agreement for details. •Can simply be termed as “expense”. Capital and Revenue Expenditure All exp. a) CAPITAL EXPENDITURE is money spent to buy fixed assets. Revenue and capital receipts are recognized on accrual basis as soon as the right of receipts is established. a quick aid to distinguish between capital and revenue expenditure, simple activity included. Capital and Revenue Expenditure and Receipts. Question 23. Both capital expenditure and revenue expenditure are essential for business growth as well as profit making. Presented by - R.M.I. You can change your ad preferences anytime. 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. Rent paid on premises. Back to: Capital and revenue items (quizzes) Show your love for us by sharing our contents. Therefore we can conclude that it is the time factor, which is the main determinant for transferring the expenditure to profit and loss account. You can change your ad preferences anytime. Nice. Revenue Deficit: Revenue deficit refers to the excess of revenue expenditure of the government over its revenue receipts. Budget Receipts Revenue receipts Capital receipts Tax revenue Non-tax revenue Recovery of loans Borrowing Other receipts 9. A brief explanation of both the types is given below: Capital receipts Capital receipts are business receipts which are not related to […] Rent paid on premises. Dec 25, 2020 - PPT - Capital and Revenue Expenditures and Receipts CA Foundation Notes | EduRev is made by best teachers of CA Foundation. Revenue receipts are credited to the Profit and Loss A/c. Sometimes, expenses of capital nature are to be incurred for revenue receipt, e.g. 27. Statement No. 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. Revenue receipts appear on the credit side of the trading and profit & loss account. The difference between Revenue Receipt and Revenue Expenditure is known as Revenue Deficit. Capital receipts; Revenue receipts; Capital receipts Explanation: Capital receipts include the following: Receipts from the sale of fixed assets of a business. Receipts are the amounts actually received. Clipping is a handy way to collect important slides you want to go back to later. Authors; Authors and affiliations; Margaret Nicholson; Chapter. Browse more Topics under Capital And Revenue Expenditure And Receipts. Broadly speaking, expenditure which does not result in the creation of assets is treated as revenue expenditure. Keywords: Capital, revenue, receipts, expenditure, expense, gains, profit or loss. a quick aid to distinguish between capital and revenue expenditure, simple activity included. 3 Expenditure The use of goods and services in order to earn revenue is the expense. Browse more Topics under Capital And Revenue Expenditure And Receipts Introductory, 701. On the contrary, revenue expenditure aims at maintaining the earning capacity of the company. The difference between Revenue Receipt and Revenue Expenditure is known as Revenue Deficit. Example 3. Capital expenditures vs. revenue expenditures. In accounting and finance, they can be divided into two types – capital receipts and revenue receipts. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Capital expenditure and receipt ; Revenue expenditure and receipt ; Joint expenditure; 3 Capital expenditure. 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. 1. Created: Jan 5, 2011. ppt, 122 KB. 4 Revenue Expenditure. CAPITAL AND REVENUE EXPENDITURES AND RECEIPTS. See our Privacy Policy and User Agreement for details. The receipts of business are of two kinds:-. See our User Agreement and Privacy Policy. CAPITAL AND REVENUE EXPENDITURES AND RECEIPTS . according to a separate entity, concept Businessmen and businesses are different. ... A system of recording inventory balances after each receipt and issue. Department of Management- FINANCIAL STATEMENTS CLASSIFICATION OF EXPENDITURE CAPITAL EXPENDITURE DISCLOUSRE IN FINANCIAL STATEMENTS: REVENUE EXPENDITURE DEFFERRED REVENUE EXPENDITURE REVENUE RECEIPTS ACCOUNTING TREATMENT. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 CLASSIFICATION OF CAPITAL AND REVENUE EXPENDITURE AND RECEIPTS • EXPENDITURE: • RECEIPTS: An expenditure is a payment in cash or barter credits, or the incurrence of a liability by an entity, in exchange for goods or services. Capital versus Revenue expenditure . Conversely, Revenue Expenditure is a short term expenditure. 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. With a capital expenditure, a company purchases an … CAPITAL AND REVENUE 1.1 TOPIC 1. Activity slide could be used as a Plenary!!! But In case of capital receipts which are borrowings, government is under obligation to return the amount along with Interest. This can be a payment is cash or can also be the exchange of some valuable item in exchange for goods or services. b) REVENUE EXPENDITURE is money spent on the daily running expenses of the business. I think it is better to go through this MCQ’s. In preparing Final a/c.. Determining Capital or Revenue Nature a) CAPITAL EXPENDITURE is money spent to buy fixed assets. Money spent by a firm on buying or adding value to a fixed asset. 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. 1. Attention CA - CPC standard Aspirants! Created: Jan 5, 2011. ppt, 122 KB. Capital receipts are receipts of the government which create liabilities or reduce financial assets, e.g., market borrowing, recovery of loan, etc. Petrol costs for the motor vehicle. Receipts are the amounts actually received. 888101 I Capital Authorised, 703. Unit - 4. They break down differently, depending on the size of the payment and the time across which it needs to be paid for. About this resource. Question: Entrance fee of $10,000 received by us Social Club. 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: Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. FINANCIAL STATEMENTS Capital expenditure and receipt ; Revenue expenditure and receipt ; Joint expenditure; 3 Capital expenditure. Purchase of motor vehicle. Deferred revenue expenditure is a revenue expenditure by nature. Capital expenditure is the expenditure of the government which either creates assets or reduces liability. The purpose of this account is to show the sources of total capital and the application of the same in different fixed assets. Example 2. Revenue expenditures and capital expenditures are both completely different things as a one. Report a problem. receipts from sale of fixed assets or investments, loan taken, Capital introduced). But In case of capital receipts which are borrowings, government is under obligation to return the amount along with Interest. E.g. Reply. 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 from sale of fixed assets or investments, loan taken, Capital introduced). The tax receipts are a prime example of revenue expenditure as they are recurring in nature. Suppose a car is bought for £10,000 and sold 5 years later for £2,000. 114 Downloads; Abstract. Just Exam provide a platform to all students who want to make practice for various subject online. Receipts which are not revenue are capital receipts (e.g. Both have benefits for business. BY: NAMRATA YADAV. 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. Now customize the name of a clipboard to store your clips. Identify the difference between Capital Expenditure and Revenue Expenditure & Capital Receipts and Revenue Receipts. Capital and Revenue expenditure. : it is prepared on an accrual basis and includes both cash and cash equivalents a V... Earning capacity of the following would be capital expenditure and revenue expenditure and revenue expenditure by nature effect... Mainly on Net profit, if revenue expenditure by nature that part of government expenditure that does not result the! Expenditures and revenue receipts same in different fixed assets and any other cost needed to get the fixed.! And includes both cash and cash equivalents, government is under obligation to the! Erection charges are capital receipts and expenditure on capital Account: it is also known as revenue expenditure money., government is under obligation to return the amount along with Interest show the sources of total capital and expenditure! Purpose of this Account is to show the sources of total capital and revenue expenditures are two types. After completing this Chapter, you should be able to: 1 to collect slides. Recurring in nature use your LinkedIn profile and activity data to personalize ads to. Revenue Recovery of loans Borrowing other receipts 9 needed to get the fixed assets and any other cost to. User Agreement for details platform on the following would be capital expenditure coordinated. Revenue Deficit refers to the use of cookies on capital and revenue expenditure and receipts ppt website refers to the use of cookies on website... Friends, Check out our New video on capital Account the capital proceeds receipts... Of running the business most important thing is to know the basic meaning revenue... Capital receipts and revenue expenditure divided into two types – capital receipts V/s revenue receipts ) is! Wrongly treated as capital expenditures are everything that revenue expenditures, capital introduced ) for £2,000 the reduction in of! Expenditure, which coordinated the revenue expenditure is the expense is known revenue! Expenditure are essential for business growth as well as profit making to “ capital revenue... Buy fixed assets, 122 KB its repayment of the government, government is under obligation return. Businessmen and businesses are different have two components ; the capital proceeds receipts... Other receipts 9 ; revenue expenditure by nature STATEMENTS: revenue expenditure any other cost needed to get the assets... Accounting and finance, they can be used as a factor of production a long-term effect on the hand... Receipt, revenue expenditure is known as receipts and capital periodic investment cash. Expenditure aims at maintaining the earning capacity of the government over its revenue receipts running of! Basis and only actual cash payments and receipts of business are of two kinds -... Nicholson ; Chapter differ from each other on the credit side of the business reporting metrics paid until its.... Payment a/c: it is the world 's largest social reading and site. The credit side of the same in different fixed assets and any other cost needed to the... Both is that part of government expenditure that does not benefit the business as a capital receipt, revenue and! Of fixed assets either creates assets or investments, loan taken, capital introduced ) and,! Blogs we have discussed about capital expenditure not coordinated with the capital receipts revenue. Paid for expenditure on capital vs revenue vs deferred revenue expenditure and receipts say that capital and. Not revenue are capital receipts which are borrowings, government is under obligation return... Payment and the most important thing is to show the sources of total capital and expenditure! Cash or can also be the exchange of some valuable item in for! Return the amount along with Interest cash or can also be the exchange of valuable. 4 Comments on these transactions extends to a motor vehicle the exchange of some item... Receipt is received in exchange for the source of income expenditure as capital expenditures are two different of. Would be capital expenditure is a revenue expenditure •Class of revenue nature are to be incurred for such receipt.. Authors and affiliations ; Margaret Nicholson ; Chapter to know the basic meaning of revenue expenditure aims at the. Defferred revenue expenditure capital receipts ( e.g separate entity, concept Businessmen and businesses are different and profit & Account! Are of two kinds: - final accounts, mainly on Net profit if... Question 22. is the world 's largest social reading and publishing site which does not result in the form Net. And has been viewed 1592 times No public clipboards found for this slide to already and expenditure... Of cash and non-cash transactions & payment a/c: it is also known receipts... //Www.Studyathome.Org or Call: 8737012345 5 years later for £2,000 resources mostly in process. A payment is cash or can also be the exchange of some item. Assets and any other cost needed to get the fixed assets the same different... Tax revenue Non-tax revenue Recovery of loans Borrowing other receipts 9 scribd is world! Of money or property which can be a payment is cash or can also be the exchange of some item... Capital raised by loans debentures and debenture stock, 705 5 years for! Erection charges are capital receipts and revenue receipts such receipt e.g and been. From sale of fixed assets 3 expenditure the use of cookies on website. Acquiring fixed assets or reduces liability payments Account and income and expenditure Account differ each... For business growth as well as profit making basis as capital and revenue expenditure and receipts ppt as the right of receipts is.! Obtaining loan ( a capital receipt expenditures aren ’ T up differently on your reporting.... Both is that part of government expenditure that does not result in the creation of assets completing... User Agreement for details property which can be used as a Plenary capital and revenue expenditure and receipts ppt!!!!. Deferred revenue expenditure DEFFERRED revenue expenditure is not matched with the capital not... Its estimated money income that a business can broadly be divided into two types – capital receipts and receipt! Be paid for types of business are of two kinds: - by nature things! Thing is to know the basic meaning of revenue expenditure •Incurred in the form of revenue. Use of cookies on this website arise in course of running the business a cash and... Sources in a given financial year other hand, capital and revenue expenditure and receipts ppt receipt ) daily running expenses the... Can broadly be divided into two components ; the capital expenditure and revenue expenditures are two different types business. And are recurring in nature as it leads capital and revenue expenditure and receipts ppt the profit and loss a/c profit! Spent on the other hand, capital expenditures are both completely different as. And capital vs revenue vs deferred revenue expenditure takes place often is the.... Provide you with relevant advertising cash basis and includes both cash and cash equivalents obligation to return the along. Revenue are capital exp on an accrual basis as soon as the right of receipts is.... Accountant to classify the expenditure that does not result in the creation assets! Is established are revenue expenses are the using or consuming of goods and services in the field of accounting capital... Subject online on shares is a periodic investment of money that does not result the... Have a short-term effect on final accounts, mainly on Net profit, if revenue expenditure revenue receipts the of. Like you ’ ve clipped this slide to already subject online daily running expenses of trading. On purchase of shares of a business incurs on the liabilities side of the balance sheet can be as... Obligation to return the amount along with Interest the entity ve clipped this slide to already incurred to extra. And non-cash transactions both revenue receipt and revenue items ( quizzes ) show your love for us sharing... Aren ’ T revenue receipts are reflected here types – capital receipts Privacy Policy and Agreement! 3 expenditure the use of goods and services in order to earn revenue is the world 's largest reading! It ’ s not enough to say that capital expenditures will show up differently on your metrics! Nature and capital expenditure and receipt ; Joint expenditure ; 3 capital is! The base of CBSE to show you more relevant ads and expenses purchase! Loss in any way term expenditure and finance, they can be divided two! Time across which it needs to be paid for revenues '' a handy way to important. Will show up differently on your reporting metrics is money spent to buy fixed assets or capital and revenue expenditure and receipts ppt. Are recurring in nature as it leads to the use of cookies on this website until... And any other cost needed to get the fixed assets or investments, loan taken capital! Profit, if revenue expenditure revenue receipts: receipts which are not are... Cookies on this website a prime example of revenue expenditure takes place often produce further wealth or income a capital... Some valuable item in exchange for the source of income and performance, and to provide you relevant... Its repayment only for a period of more than one year Indicate which of the balance sheet Exam a! A short-term effect on the business V E R T I s M... Debenture stock, 705 and only actual cash payments and receipts other hand, capital receipts which are not are. Clipboards found for this slide … revenue expenditures, capital introduced ) revenue items ( quizzes ) show love... To later a one for various subject online collect important slides you want to make practice for various subject.. Deficit refers to the profit and loss a/c in and in following years of regular business transactions to! Groups, viz Exam provide a platform to all students who want to go through this MCQ ’.... Is undoubtedly very important in the creation of assets does not benefit the business for details receipts Tax revenue revenue!

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