Question 11 of 18
Q.Distinguish between capital receipt and revenue receipt.
Puducherry TnboardTamil Nadu HSC First Year (DGE) Commerce Board 2022Subjective· 3mImportance★★★★★
61% · 11/18 Questions
You're viewing a preview — the full solution, concept, methods & PYQ mapping are locked.
Start your 14-day free trial to unlock the full solution →Capital receipts are non-recurring receipts from sources outside normal trading (sale of fixed assets, loans, fresh capital) shown in the Balance Sheet; revenue receipts are recurring receipts from normal trading (sale of goods, income earned) taken to the Trading/P&L Account.
Distinction (Tamil Nadu HSC Class-11 Accountancy):
| Basis | Capital Receipt | Revenue Receipt |
|---|---|---|
| Meaning | Receipt not arising from normal business operations | Receipt arising from normal, day-to-day business operations |
| Nature | Non-recurring (occasional) | Recurring (regular) |
| Source | Sale of fixed assets, loans borrowed, additional capital introduced | Sale of goods/services, commission, interest, rent, discount received |
| Effect on business | Either increases liability (loan/capital) or reduces an asset (asset sold) | Earned income of the period |
| Shown in | Balance Sheet | Trading Account / Profit & Loss Account |
| Effect on profit | Does not affect profit directly | Directly affects (increases) profit |
| … |
Unlock everything free for 14 days
- Full step-by-step solutions
- Concept-first explanations
- Methods, shortcuts & mistakes
- PYQ mapping + timed mock tests
Full access for 14 days. No credit card required.