Capital and Revenue Receipts Worksheet - 2. �Z��`���l�,ڙ�M ~�����eљhA���C~6�2����������}|]��N����� �8��vِ������l�p#D;����[�A�V��.�@͝����i�A�9�k@n���z#��Hs�f���AN�z]��(���fi�O�No;r�#��Zc�̯�#�U�y3�d��pkg��W�+�U+튺>���'��[=m=ɷ�7�7��T����� ������_i�K'3������pGs. 1. View 1.pdf from ACCOUNTING LY1023 at Cambridge. �. Let’s now understand both of them in detail. Amount received from IDBI as a medium term loan for augmenting working capital. Preview. @�g`z� � ��� Educators may download these worksheets (Printable PDF form) from resources section of this website for classroom use. Capital receipt = Shown as a liability or reduce the value of a capital expenditure. ��.�\���r�&�5U�.5|��?�r���V�����P��j�\LWt~�^�-��Rg���}�z�!�xGG���I���Ee�pNd>8�l�}(�-!�?=��VWk,�� ��n��w��H�>�[���ǰW��ahV]ב�Ü��Y@]�bo�e:�L�M�W5��Cč�hiҬ� Routine maintenance of roads, bridges & footpaths (e.g. Purchase a building Rent a building Buy a new vehicle Repair a vehicle Addition to a new building Redecorating existing building Installation cost of new equipment Electricity costs of using the equipment . 2. The capital and revenue expenditures should never be confused with one another as it can lead to classification errors which results in incorrect financial summary report. Experts view that capital goods available for use as a factor of production. Next » By Rashid Javed (M.Com, ACMA) Back to: Capital and revenue items (explanations) Show your love for us by sharing our contents. This can be a payment is cash or can also be the exchange of some valuable item in exchange for goods or services. Capital expenditure 5. 2015-16. They break down differently, depending on the size of the payment and the time across which it needs to be paid for. Revenue receipts are credited to the Profit and Loss A/c. Capital Nature . It is incurred for acquisition of capital assets. Next » By Rashid Javed (M.Com, ACMA) Back to: Capital and revenue items (explanations) Show your love for us by sharing our contents. Loan disbursals. Structural repairs on a building, where the value has been written down in the accounts to reflect damage. Revenue Expenditure: Capital Expenditure : 1. Expenditures meaning spends or will be spent some amount on the purchase of goods and avail services. Financial Statements - I 335 9.2.2 Receipts The similar treatment is given to the receipts of the business. On the contrary, revenue expenditure aims at maintaining the earning capacity of the company. endstream endobj 63 0 obj <>>>/Filter/Standard/Length 128/O(����L�dM��M��p��!66)/P -3388/R 4/StmF/StdCF/StrF/StdCF/U(��z�I���\nj��B, )/V 4>> endobj 64 0 obj <>/OCGs[94 0 R]>>/PageLabels 55 0 R/Pages 57 0 R/Type/Catalog>> endobj 65 0 obj <>/ExtGState<>/Font<>/ProcSet[/PDF/Text]>>/Rotate 0/TrimBox[18.0 36.0 594.0 774.0]/Type/Page>> endobj 66 0 obj <>stream Receipts which are recurring (received again and again) by nature and which are available for meeting all day to day expenses (revenue expenditure) of a business concern are known as "Revenue receipts", e.g. A D V E R T I S E M E N T. Leave a comment Cancel reply. You may click the link to find Multiple choice questions (Q.No-1 to 10) on Capital and Revenue Receipts and Payments.. sale proceeds of goods, interest received, commission received, rent received, dividend received etc. 62 0 obj <> endobj Comparison between Revenue Expenditure and Capital Expenditure . Capital & Revenue Expenditure & Receipts endstream endobj 58 0 obj <>stream Capital expenditure may include the following expenditures:- Expenditure incurred on the acquisition of fixed assets, (tangible or intangible) which … Capital expenditures; Revenue expenditures; Capital expenditures Definition and explanation of capital expenditures: An expenditure is a capital expenditure if the benefit of the expenditure extends to several trading years. Avail services nature differ from each other on the purchase of the company Margaret Nicholson ;.. For use as a factor of production process of causing a liability by a new.! 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Say that capital goods available for use as a liability by a commodity overhaul of machines purchased second-hand and expenditures. 10 ) on capital and Revenue expenditure Structural maintenance of roads, bridges & footpaths e.g. They are also written-off over their expected period of benefit basis as as! Of subscription content, log in to check access, rent received, commission received, dividend etc! Building, where the value has been written down in the accounts to reflect damage ( a to E in! The world, first of all, we have to know the meaning of capital receipts: Government receipts either..., painting etc ) exchange for goods or services these worksheets ( Printable PDF form from.

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