CAPITAL And REVENUE TRANSACTION (2).pptx

Accounting igcse

1. Lesson guides ACCOUNTING year 10 Topic: Capital & Revenue Expenditure

2. ‹#› RECEIPT A revenue receipt is money received by a business from normal trading activities. Activity 1 (3 minutes) Give three (3) examples of revenue receipt STARTER ACTIVITY https://kahoot.it/challenge/04257956?challenge-id=47f6a119-09c0-4dbf-b8e6-7091ef453937_1705565532758

3. ‹#› A capital receipt is money received by a business from a source other than the normal trading activities. Activity 2 (3 minutes) Give three (3) examples of capital receipts

4. ‹#› Transaction Capital receipt Revenue receipt Cash sales Loan from a bank Discount received Commission received Activity 3 (3 minutes) Indicate by placing a tick ( ✓ ) which transactions are capital receipts and revenue receipt

5.   Activity 4 (5 Minutes) Classify the following receipts as either capital receipts or as revenue receipts.  Amount received from the sale of inventory. Sales commission received from the manufacturer. Cash discount received from the supplier for the prompt payment. Long term loan received from the Bank. Interest received on deposit account from NMB Bank

6. ‹#› Learning objectives: You should be able to classify items as capital or revenue nature . Activity 5 6 Minutes

7. CAPITAL AND REVENUE TRANSACTION * Learning objectives: You should be able to classify items as capital or revenue nature . Watch the video in the link below and answer questions in the worksheet given. https://www.youtube.com/watch?v=eq2LM6dGUd8&t=112s Worksheet