ICSE Class 10 Commerce 2023 Solved Papers
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Question : 19
Total: 39
Capital and Revenue Receipts
Solution:
Difference between Capital Receipts and Revenue Receipts
| Capital Receipts | Revenue Receipts |
|---|---|
| (a) Capital receipts refer to the receipts of a non-recurring nature such as additional capital from owners, loans raised by the firm and money obtained from a sale of fixed assets. | Revenue receipts are the receipts obtained during the normal course of business operation and are of a recurring nature. Sale proceeds of goods and services, interest received, dividend received, rent received are examples of revenue receipts. |
| (b) Capital receipts are shown on the liabilities side of the Balance Sheet. | Revenue receipts are credited to the Trading or Profit and Loss Account. |
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