Receipts and Expenditures

Everything related to Capital and Revenue Receipts, and Capital and Revenue Expenditure along with their differentiation and examples.

1. Receipts AND EXPENDITURES PRESENTED TO: MR. AYUSH KANSAL PRESENTED BY: SWASTI CHATURVEDI B.B.A. LL.B. VIII SEM SECTION- ‘B’

2. INTRODUCTION Receipts are just the opposites of expenses. But without receipts, there may be no existence of the business. Not all receipts directly increase the profits or decrease the loss. But some affect the profit or loss directly. Expenditure is an outflow of  money , or any form of  fortune  in general, to another person or group to pay for an item or service, or for a category of  costs . For a  tenant ,  rent  is an expense. For students or parents,  tuition  is an expense.

3. CAPITAL RECEIPTS

4. REVENUE RECEIPTS

5. DIFFERENCE BETWEEN CAPITAL AND REVENUE RECEIPT BASIS FOR COMPARISON CAPITAL RECEIPT REVENUE RECEIPT Meaning Capital Receipts are the income generated from investment and financing activities of the business. Revenue Receipts are the income generated from the operating activities of the business. Nature Non-Recurring Recurring Term Long Term Short Term Shown in Balance Sheet Income Statement Received in exchange of Source of income Income Value of asset or liability Decreases the value of asset or increases the value of liability. Increases or decreases the value of asset or liability.

6. CAPITAL EXPENDITURE

7. REVENUE EXPENDITURE

8. DIFFERENCE BETWEEN CAPITAL AND REVENUE EXPENDITURE

9. EXAMPLES

10. CONCLUSION In general, Capital Receipts and Revenue Receipts play a vital role in the growth of business, as the business may not be able to survive, in the absence of the two. B oth capital expenditure and revenue expenditure are vital for the sustainable profitability of a business venture. Mostly, revenue expenses are a periodic investment which does not result in immediate or delayed benefit. However, it is used to keep operations running uninterruptedly.