Differences Between Capital Receipts And Revenue Receipts

Following are the differences between capital receipts and revenue receipts.

Source

Capital receipt is the amount received from the sale of assets, shares and debentures. Revenue receipt is the amount received from the sale of goods and services.

Nature

Capital receipt is of non-recurring nature. Revenue receipt is of recurring nature.

Impact

Main items of capital receipt are capital and loan, which affect financial position of the business. Main items of revenue receipt are sale of merchandise, discount and commission, which affect operating results of the business.

Treatment

Capital receipt is shown on the liabilities side of the balance sheet. Revenue receipt is shown on the credit side of the trading and profit and loss accounts.