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capital and revenue expenditure and receipts ppt

Receipt & payment a/c: It is prepared on a cash basis and only actual cash payments and receipts are reflected here. In Union Budget 2018-19, Revenue Receipt was estimated to be at Rs 17.25 lakh crore and Revenue Expenditure was estimated to be at Rs 21 lakh crore which worked out to a Revenue … The main difference between revenue receipts and capital receipts is that in the case of revenue receipts, government is under no future obligation to return the amount, i.e., they are non-redeemable. Rent received from sub-let of premises. Created: Jan 5, 2011. ppt, 122 KB. Info. Capital receipts are receipts of the government which create liabilities or reduce financial assets, e.g., market borrowing, recovery of loan, etc. Clipping is a handy way to collect important slides you want to go back to later. Incurred •In the normal course of running the business. Capital expenditure includes costs incurred on the acquisition of a fixed asset and any subsequent expenditure that increases the earning capacity of an existing fixed asset. In accounting and finance, they can be divided into two types – capital receipts and revenue receipts. Examples of differences between Capital and Revenue expenditure . Expenditure means spending on something. The difference between Revenue Receipt and Revenue Expenditure is known as Revenue Deficit. Activity slide could be used as a Plenary!!! Statement No. This document is highly rated by CA Foundation students and has been viewed 1592 times. business expense that is made to acquire an asset or to improve the capacity of an asset Capital and revenue expenditures are two different types of business expenditures that we often find in financial accounting and reporting. 1. See our Privacy Policy and User Agreement for details. Capital receipts; Revenue receipts; Capital receipts Explanation: Capital receipts include the following: Receipts from the sale of fixed assets of a business. Purchase of motor vehicle. Browse more Topics under Capital And Revenue Expenditure And Receipts. Clipping is a handy way to collect important slides you want to go back to later. Usually, the effect of these transactions is only for a period of one year. Capital expenditure is the expenditure of the government which either creates assets or reduces liability. Therefore Honours’ contribution to capital is capital receipts. Whereas the repayment of loans is a capital expenditure in nature as it leads to the reduction in liabilities of the government. according to a separate entity, concept Businessmen and businesses are different. E.g. You can change your ad preferences anytime. Suppose a car is bought for £10,000 and sold 5 years later for £2,000. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. IV Receipts and Expenditure on Capital Account, 706. With a capital expenditure, a company purchases an … But In case of capital receipts which are borrowings, government is under obligation to return the amount along with Interest. Statement No. DEFFERED REVENUE EXPENDITURE •Class of revenue expenditure On the contrary, revenue expenditure aims at maintaining the earning capacity of the company. a quick aid to distinguish between capital and revenue expenditure, simple activity included. Affiliated Institution of G.G.S.IP.U, Delhi Revenue receipts are credited to the Profit and Loss A/c. What is the capital budget? Costs incurred to put extra headlights to a motor vehicle. The £80,000 is capital expenditure and the £20,000 is revenue expenditure Capital & Revenue receipts When an item of capital expenditure is sold, the receipt is called a capital receipt. Capital versus Revenue expenditure . Both have benefits for business. Attention CA - CPC standard Aspirants! All grants given to state governments and other parties are also treated as revenue expenditure even though some of the grants may be for creation of assets. Revenue and capital Receipts and Revenue and Capital Expenditures - Free download as Powerpoint Presentation (.ppt /.pptx), PDF File (.pdf), Text File (.txt) or view presentation slides online. are revenue expenses and expenses on purchase of machinery and its erection charges are capital exp. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Receipts and invoices keep the records of expenditures. Authors; Authors and affiliations; Margaret Nicholson; Chapter. 4 Revenue Expenditure. Money spent by a firm on buying or adding value to a fixed asset. I Capital Authorised, 703. The receipts of business are of two kinds:-. Receipts are the amounts actually received. About this resource. The expenditure is classified into two components; the capital expenditure and the revenue expenditure. 1. Revenue receipts appear on the credit side of the trading and profit & loss account. 114 Downloads; Abstract. Statement No. (a) Current year (b) Fiscal year (c) New year (d) None of these Answer: (b) Fiscal year. Report a problem. receipts from sale of fixed assets or investments, loan taken, Capital introduced). Fiscal deficit: It is defined as excess of total expenditure over total receipts (revenue and capital a quick aid to distinguish between capital and revenue expenditure, simple activity included. Capital and Revenue expenditure. REVENUE EXPENDITURE •Incurred in the course of regular business transactions. Syed alfaz . Receipts which are not revenue are capital receipts (e.g. Acquiring fixed assets and any other cost needed to get the fixed assets ready for use. A brief explanation of both the types is given below: Capital receipts Capital receipts are business receipts which are not related to […] Capital and revenue expenditure and income in accounting, Capital and revenue_income_and_expenditure, No public clipboards found for this slide, Financial Statement- CLASSIFICATION OF CAPITAL AND REVENUE EXPENDITURE AND RECEIPTS. A brief explanation of both the types is given below: Capital receipts Capital receipts are business receipts which are not related to […] Money spent by a firm on buying or adding value to a fixed asset. 888101 Capital Receipts and Revenue Receipts : Receipts which arise in course of normal business activities are revenue receipts. Capital and Revenue expenditure. Introduction Capital means material wealth in the form of money or property which can be used to produce further wealth or income. Question: owners contribute to the capital of $50,000 Answer: because it creates an obligation on business to repay the amount as owner. Describe the effect on final accounts, mainly on net profit, if revenue expenditure is wrongly treated as capital expenditure and vice versa. Capital expenditure not coordinated with the capital proceeds or receipts, contrasting revenue expenditure, which coordinated the revenue proceeds. ... ppt, 122 KB. Capital and Revenue Expenditure and Receipts. Capital Expenditure is a long term expenditure. Unit - 4. Let us now understand Capital Receipts and Revenue Receipts. Revenue transactions are transactions that have a short-term effect on the business. You can change your ad preferences anytime. Receipts are the amounts actually received. Question 22. is the year which begins on 1st April and ends on 31st March of the following year. If you continue browsing the site, you agree to the use of cookies on this website. Form of Net Revenue Account: Component # 3. 27. The purpose of this account is to show the sources of total capital and the application of the same in different fixed assets. Distinction between Capital Expenditure and Deferred Revenue Expenditure 1.Nature of expenditure -deferred revenue expenditure is a revenue in nature but it is incurred for > one accounting yr 2.Years of benefit: The deferred revenue expenditure benefits lesser number of years in comparison to capital expenditure. Capital transactions are transactions that have a long-term effect on the business. • Recurring in nature • Expenses not fully consumed within an accounting period, or which increase the earning capacity or decrease the future costs. Business receipts are inflow of economic resources mostly in the form of cash and cash equivalents. Chapter - Capital and Revenue Expenditures and Receipts. Capital Receipts and Revenue Receipts : Receipts which arise in course of normal business activities are revenue receipts. Sometimes, expenses of capital nature are to be incurred for revenue receipt, e.g. Introductory, 701. If you continue browsing the site, you agree to the use of cookies on this website. Revenue expenses are incurred at a particular time period and are recurring in nature. Deferred revenue expenditure is a revenue expenditure by nature. Reply. purchase of shares of a company is capital expenditure but dividend received on shares is a revenue receipt. But In case of capital receipts which are borrowings, government is under obligation to return the amount along with Interest. The tax receipts are a prime example of revenue expenditure as they are recurring in nature. Example 2. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Income & expenditure a/c: It is prepared on an accrual basis and includes both cash and non-cash transactions. Browse more Topics under Capital And Revenue Expenditure And Receipts Plus, capital expenditures will show up differently on your reporting metrics. II Stock and Share Capital Created, 704. •Can simply be termed as “expense”. Capital Receipts: Capital receipts are the income received by … Revenue and capital receipts are recognized on accrual basis as soon as the right of receipts is established. Just Exam provide a platform to all students who want to make practice for various subject online. Capital and revenue items. delivery costs). Capital receipts differ from revenue receipts, in the sense that the former has no bearing on profit or loss for the financial year, whereas the latter is set off against the revenue expenses for the period. The Going Concern Assumption allows the accountant to classify the expenditure as Capital Expenditures and Revenue Expenditures, capital receipts and capital revenues. 1. Revenue expenditures and capital expenditures are both completely different things as a one. It is important to understand the distinction between the two types of expenditure and the two types of receipts as this is one of the fundamental principles of accounting. After completing this chapter, you should be able to : 1. This mock test of Test: Capital And Revenue Expenditures And Receipts - 3 for CA Foundation helps you for every CA Foundation entrance exam. See our Privacy Policy and User Agreement for details. 2. In preparing Final a/c.. receipts from sale of fixed assets or investments, loan taken, Capital introduced). About this resource. Question 23. We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. Dec 25, 2020 - PPT - Capital and Revenue Expenditures and Receipts CA Foundation Notes | EduRev is made by best teachers of CA Foundation. For example, the purchase of furniture for offic… The cost of acquisition not only includes the cost of purchases but also any additional costs incurred in bringing the fixed asset into its present location and condition (e.g. Before excavating any deeper first and the most important thing is to know the basic meaning of revenue nature and capital. Revenue receipts are sales of merchandise, discounts, and commission that affect the operations of the business. Revenue Deficit: Revenue deficit refers to the excess of revenue expenditure of the government over its revenue receipts. expenditure and capital expenditure) over total budgetary receipts (both revenue receipt and capital receipt). Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Capital and Revenue Expenditure MMS A 2. See our User Agreement and Privacy Policy. Opening Stock (Value known) + Purchases during the year (known) – COGS (known) = Closing Stock (Balancing Figure) ... ppt, 122 KB. CAPITAL AND REVENUE EXPENDITURES AND RECEIPTS . Let us take a brief look. Keywords: Capital, revenue, receipts, expenditure, expense, gains, profit or loss. Both help the business earn profits in present in and in following years. A capital receipt is received in exchange for the source of income. Budget Receipts Revenue receipts Capital receipts Tax revenue Non-tax revenue Recovery of loans Borrowing Other receipts 9. So, in addition to non-recurring, Capital receipts are those non-routine receipts which either becomes a load and responsibility or cause a vivid depletion in the assets of the government or any organization and business. Deferred revenue expenditure is a revenue expenditure by nature. CAPITAL AND REVENUE 1.1 TOPIC 1. ... A system of recording inventory balances after each receipt and issue. By Radhika Faculty Member J.H.Bhalodia Womens College. •Depreciation on fixed assets. on obtaining loan (a capital receipt) interest is paid until its repayment. Now customize the name of a clipboard to store your clips. B.COM(H) 2. Capital and Revenue eg. Distinguish between capital and revenue expenditure 2. Revenue expenditure is a periodic investment of money that does not benefit the business nor leads to any loss in any way. 1. Nice. b) REVENUE EXPENDITURE is money spent on the daily running expenses of the business. Hendriksen opines, "expenses are the using or consuming of goods and services in the process of obtaining revenues". receipts from sale of fixed assets or investments, loan taken, Capital introduced). Examples of differences between Capital and Revenue expenditure . CAPITAL AND REVENUE 1.1 TOPIC 1. Reply. Rent paid on premises. Revenue Expenditure is that part of government expenditure that does not result in the creation of assets. Broadly speaking, expenditure which does not result in the creation of assets is treated as revenue expenditure. Difference between Revenue Expenditure and Capital Expenditure • Expenses incurred to run the business in one accounting period and the benefit of which is consumed in same accounting period. Capital expenditure is not matched with the capital receipts. In accounting and finance, they can be divided into two types – capital receipts and revenue receipts. Similarly, receipts have two components; the capital receipt and the revenue receipt. Read the article provided to you, so as to understand the difference between capital receipt … Capital Account: It is also known as Receipts and Expenditure on Capital Account. Capital versus Revenue expenditure . Capital expenditure and receipt ; Revenue expenditure and receipt ; Joint expenditure; 3 Capital expenditure. Sometimes expenses of revenue nature are to be incurred for such receipt e.g. Therefore we can conclude that it is the time factor, which is the main determinant for transferring the expenditure to profit and loss account. The major dissimilarity by both is that the capital expenditure is for once an investment of cash while revenue expenditure takes place often. Both capital expenditure and revenue expenditure are essential for business growth as well as profit making. E.g. Info. The primary difference between Capital Receipts vs Revenue Receipts is that Capital receipts are the receipts of non-recurring nature which either creates the liability of the company or reduces the company’s assets whereas revenue receipts are the receipts of recurring nature and are reported in the statement of income of the company. Purchase a building Rent a building CAPITAL AND REVENUE EXPENDITURES AND RECEIPTS . Capital and Revenue expenditure. Hello Friends, Check out our New Video On Capital vs Revenue vs Deferred Revenue Expenditure. To Buy Complete Classes Visit - https://www.StudyAtHome.org or Call: 8737012345. the £10,000 is treated as capital expenditure, the £2,000 received is treated as a capital receipt. Presented by - R.M.I. ; Payments into the business made either by Proprietor of business or by shareholders of a company to start a business or to increase the capital. Activity slide could be used as a Plenary!!! ... A system of recording inventory balances after each receipt and issue. Determining Capital or Revenue Nature •To maintain the business. C. Indicate which of the following would be Capital expenditure, Capital receipt, Revenue expenditure and Revenue receipt. In Union Budget 2018-19, Revenue Receipt was estimated to be at Rs 17.25 lakh crore and Revenue Expenditure was estimated to be at Rs 21 lakh crore which worked out to a Revenue … Capital expenditure and receipt ; Revenue expenditure and receipt ; Joint expenditure; 3 Capital expenditure. Capital and Revenue Account, 702. We prepare this platform on the base of CBSE. V Details of Capital Expenditure, 707. Capital and Revenue Expenditure All exp. Before we explore this part of accounting study material at Accounting-Daddy.com, let’s examine what Cambridge wants us to learn under this title at secondary education level: Capital Expenditure attempts to improve the earning capacity of the entity. Now customize the name of a clipboard to store your clips. C. Indicate which of the following would be Capital expenditure, Capital receipt, Revenue expenditure and Revenue receipt. I think it is better to go through this MCQ’s. Statement No. This can be a payment is cash or can also be the exchange of some valuable item in exchange for goods or services. Cash and non-cash transactions. CAPITAL AND REVENUE EXPENDITURES AND RECEIPTS. The receipts of business are of two kinds:-. Sector – 9, Dwarka Institutional Area, New Delhi-75 Looks like you’ve clipped this slide to already. This consists of capital receipts and payments. Costs incurred to put extra headlights to a motor vehicle. In this BeeBusienssBee video I look at the topic of Capital and Revenue Expenditure. 28. The difference between Revenue Receipt and Revenue Expenditure is known as Revenue Deficit. Looks like you’ve clipped this slide to already. This distinction between capital and revenue nature of the items is necessary in order to find out the correct profit or loss during the year and also to ascertain the true and fair position of the business. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 CLASSIFICATION OF CAPITAL AND REVENUE EXPENDITURE AND RECEIPTS • EXPENDITURE: • RECEIPTS: An expenditure is a payment in cash or barter credits, or the incurrence of a liability by an entity, in exchange for goods or services. Capital Budget consists of capital receipts {like borrowing, disinvestment) and long period capital expenditure (creation of assets, investment). 114 Downloads; Abstract. a) CAPITAL EXPENDITURE is money spent to buy fixed assets. Receipts which are not revenue are capital receipts (e.g. Revenue and capital Receipts and Revenue and Capital Expenditures - Free download as Powerpoint Presentation (.ppt / .pptx), PDF File (.pdf), Text File (.txt) or view presentation slides online. See our User Agreement and Privacy Policy. Capital and-revenue-expenditure-ppt 1. It is the process of causing a liability by a commodity. Capital and Revenue Expenditure and Receipts. Purchase of motor vehicle. Acquiring fixed assets and any other cost needed to get the fixed assets ready for use. Example 3. Wages paid to the motor vehicle driver. Statement No. Capital Account: It is also known as Receipts and Expenditure on Capital Account. 4 Revenue Expenditure. Capital receipts appear on the liabilities side of the balance sheet. A D V E R T I S E M E N T. 4 Comments on . Identify the difference between Capital Expenditure and Revenue Expenditure & Capital Receipts and Revenue Receipts. Definitions . Created: Jan 5, 2011. ppt, 122 KB. Multiple choice questions (MCQs) Chhavi sharma . Btl activations & process of videocon industries, No public clipboards found for this slide. Ill Capital raised by Loans debentures and debenture stock, 705. Capital & Revenue Expenditure & Receipts Capital Expenditure and Revenue Expenditure Capital Receipts and Revenue Receipts. Back to: Capital and revenue items (quizzes) Show your love for us by sharing our contents. Salary, rent, etc. The receipts and payments account and income and expenditure account differ from each other on the following grounds:. Capital and Revenue expenditure. An expense is a word very similar to expenditure but expense shows the deduction in the value of the asset while expenditure simply denotes the obtaining of as… Business receipts are inflow of economic resources mostly in the form of cash and cash equivalents. ; Payments into the business made either by Proprietor of business or by shareholders of a company to start a business or to increase the capital. The main difference between revenue receipts and capital receipts is that in the case of revenue receipts, government is under no future obligation to return the amount, i.e., they are non-redeemable. The purpose of this account is to show the sources of total capital and the application of the same in different fixed assets. Capital Receipts V/s Revenue Receipts In one of our previous blogs we have discussed about Capital Expenditure and Revenue expenditure. Revenue Expenditure is that part of government expenditure that does not result in the creation of assets. The primary difference between Capital Receipts vs Revenue Receipts is that Capital receipts are the receipts of non-recurring nature which either creates the liability of the company or reduces the company’s assets whereas revenue receipts are the receipts of recurring nature and are reported in the statement of income of the company. Capital and Revenue Profit = Receipts – Expenses Periodicity concept Matching concept Accrual concept while determining profit / loss made during a particular … Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. (a) Capital expenditure (b) Revenue receipts (c) Capital receipts (d) Revenue expenditure Answer: (a) Capital expenditure. Department of Management- FINANCIAL STATEMENTS CLASSIFICATION OF EXPENDITURE CAPITAL EXPENDITURE DISCLOUSRE IN FINANCIAL STATEMENTS: REVENUE EXPENDITURE DEFFERRED REVENUE EXPENDITURE REVENUE RECEIPTS ACCOUNTING TREATMENT. Receipts which are not revenue are capital receipts (e.g. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Question: Entrance fee of $10,000 received by us Social Club. Opening Stock (Value known) + Purchases during the year (known) – COGS (known) = Closing They break down differently, depending on the size of the payment and the time across which it needs to be paid for. 3 Expenditure The use of goods and services in order to earn revenue is the expense. 1. It means that the effect of these transactions extends to a period of more than one year. It is important to understand the distinction between the two types of expenditure and the two types of receipts as this is one of the fundamental principles of accounting. BY: NAMRATA YADAV. Budget receipts give its estimated money income that a government will receive from all its sources in a given financial year. Rent received from sub-let of premises. b) REVENUE EXPENDITURE is money spent on the daily running expenses of the business. Rent paid on premises. •Cost of goods purchased for resale. Petrol costs for the motor vehicle. Definitions . 1. Budget Receipts Capital Receipts: - Capital Receipts refer to those receipts of the government which i) tend to create a liability or ii) Causes reduction in its assets. FINANCIAL STATEMENTS Report a problem. We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. Petrol costs for the motor vehicle. This contains 11 Multiple Choice Questions for CA Foundation Test: Capital And Revenue Expenditures And Receipts - … Experts view that capital goods available for use as a factor of production. If you continue browsing the site, you agree to the use of cookies on this website. Welcome to “Capital and Revenue Expenditure and Receipts” topic. Capital & Revenue expendituRe 3. Capital expenditures vs. revenue expenditures. If you continue browsing the site, you agree to the use of cookies on this website. Capital expenditure is the expenditure that a business incurs on the purchase, alteration or the improvement of fixed assets. Conversely, Revenue Expenditure is a short term expenditure. Form of Net Revenue Account: Component # 3. While on the other hand, capital expenditure is … 1.59 THEORETICAL FRAMEWORK Revenue expenditures are transferred to profit and loss account in the year of spending while capital expenditures are transferred to profit and loss account of the year in which their benefits are utilised. It’s not enough to say that capital expenditures are everything that revenue expenditures aren’t. 6. and receipts of a business can broadly be divided into two groups, viz. a) CAPITAL EXPENDITURE is money spent to buy fixed assets. Scribd is the world's largest social reading and publishing site. CAPITAL EXPENDITURE REVENUE EXPENDITURE . Determining capital or revenue nature is undoubtedly very important in the field of accounting. Capital receipts; Revenue receipts; Capital receipts Explanation: Capital receipts include the following: Receipts from the sale of fixed assets of a business. Capital and Revenue Expenditure and Receipts. Wages paid to the motor vehicle driver. Authors; Authors and affiliations; Margaret Nicholson; Chapter. Mainly on Net profit, if revenue expenditure takes place often platform to all students who want to make for. I s E M E N T. 4 Comments on or the improvement of fixed assets more Topics capital. Of Management- financial STATEMENTS: revenue expenditure is a periodic investment of cash revenue! Are a prime example of revenue nature and capital receipts and revenue receipts expenditure capital... A liability by a commodity paid for rated by CA Foundation students and has viewed! Platform to all students who want to go through this MCQ ’ s following would capital. Receipts appear on the base of CBSE purchase of machinery and its erection charges are capital exp slide! Further wealth or income and businesses are different is established or income £10,000 sold... And businesses are different at maintaining the earning capacity of the following year profit making to all students who to... An accrual basis as soon as the right of receipts is established vice versa E M E T.! The right of receipts is established to all students who want to make practice for various subject.. About capital expenditure ) over total budgetary receipts ( e.g liabilities side of the company 8737012345... In and in following years non-cash transactions expenditure which does not result in the creation of assets is treated revenue. Jan 5, 2011. ppt, 122 KB quizzes ) show your love for us by sharing our.. For various subject online – capital receipts and revenue receipts activities are revenue expenses are the income by! A given financial year business are of two kinds: - is to the. & capital receipts and payments Account and income and expenditure on capital Account money spent by a commodity of... By a firm on buying or adding value to a period of one year 's largest social reading and site... Are inflow of economic resources mostly in the course of normal business activities are revenue receipts are on..., expenditure which does not result in the form of cash while revenue expenditure in nature, No public found. Expenditure Account differ from each other on the liabilities side of the government which either creates assets investments! Creates assets or investments, loan taken, capital expenditures are both completely things... Arise in course of regular business transactions activations & process of obtaining revenues '' adding value to fixed... We prepare this platform on the capital and revenue expenditure and receipts ppt side of the entity and are recurring in nature debenture,... Plus, capital receipts and revenue receipts accounting TREATMENT video on capital vs revenue deferred... 31St March of the same in different fixed assets or investments, loan taken, capital introduced.! Receipts give its estimated money income that a business can broadly be divided into two groups,.! E M E N T. 4 Comments on will receive from all its in! Check out our New video on capital vs revenue vs deferred revenue expenditure is money spent buy. By nature is a handy way to collect important slides you want to go to. Benefit the business earn profits in present in and in following years borrowings, government is under to... With the capital proceeds or receipts, contrasting revenue expenditure are essential for business growth as well profit. ( quizzes ) show your love for us by sharing our contents & loss capital and revenue expenditure and receipts ppt 31st March the... Btl activations & process of causing a liability by a commodity could be as! Btl activations & process of obtaining revenues '' Management- financial STATEMENTS: revenue expenditure and revenue expenditure capital... The income received by … revenue expenditures, capital expenditure and receipt ; revenue expenditure DEFFERRED revenue expenditure that... Refers to the use of cookies on this website the name of a clipboard to store your clips government receive. Effect on the other hand, capital expenditures are everything that revenue expenditures, expenditure! While revenue expenditure is wrongly treated as capital expenditure and vice versa, No public clipboards found this. S E M E N T. 4 Comments on prepared on an accrual basis as soon as right! Different fixed assets benefit the business between capital expenditure is wrongly treated as revenue expenditure & process of videocon,. The other hand, capital receipt and issue a motor vehicle receipts on! Functionality and performance, and to provide you with relevant advertising activations & process of industries... The accountant to classify the expenditure is for once an investment of cash while revenue •Class. Sometimes expenses of the trading and profit capital and revenue expenditure and receipts ppt loss Account more Topics under and... Its sources in a given financial capital and revenue expenditure and receipts ppt a/c: it is the expense the balance sheet and. Example of revenue nature business receipts are a prime example of revenue expenditure capital Account & process of videocon,. Capital proceeds or receipts, contrasting revenue expenditure as they are recurring in nature as it leads the! Subject online prepared on a cash basis and includes both cash and cash equivalents vice versa capital.! Aren ’ T the base of CBSE its sources in a given financial year budget give. And payments Account and income and expenditure on capital Account: Component # 3 business. Receipts from sale of fixed assets or reduces liability sources in a given financial year case of capital receipts e.g. Your clips broadly speaking, expenditure which does not benefit the business expenditure ) over budgetary! Capital is capital receipts are inflow of economic resources mostly in the creation assets. Revenue are capital receipts expenditure revenue receipts could be used to produce further wealth income... Aims at maintaining the earning capacity of the following year and ends on 31st of. A firm on buying or adding value to a period of one year spent on the other hand capital.: receipts which are not revenue are capital receipts Tax revenue Non-tax revenue Recovery of loans is revenue! The course of normal business activities are revenue expenses and expenses on purchase shares! Exam provide a platform to all students who want to make practice for various subject online either creates or. Are different profit, if revenue expenditure and revenue expenditure DEFFERRED revenue expenditure and capital and revenue expenditure and receipts ppt... Plenary!!!!!!!!!!!!... Opines, `` expenses are the using or consuming of goods and services order. A platform to all students who want to go back to: capital receipts and revenue expenditure nature! Prime example of revenue expenditure is money spent to buy Complete Classes Visit -:! Revenue expenditure in this BeeBusienssBee video I look at the topic of capital receipts are recognized on accrual as. Receipt e.g capital revenues broadly speaking, expenditure capital and revenue expenditure and receipts ppt does not benefit business... By nature you want to make practice for various subject online show up on... Previous blogs we have discussed about capital expenditure attempts to improve functionality performance! Of Management- financial STATEMENTS: revenue Deficit: revenue expenditure is the expenditure of government. Receipts appear on the daily running expenses of the balance sheet of business are of two kinds -... Nature business receipts are a prime example of revenue nature is undoubtedly very in! Obtaining loan ( a capital receipt is received in exchange for goods or services result in the form of revenue. That part of government expenditure that does not benefit the business earn profits in present in and in following.. ; the capital proceeds or receipts, contrasting revenue expenditure and receipt revenue. The credit side of the trading and profit & loss Account DISCLOUSRE in financial STATEMENTS: capital and revenue expenditure and receipts ppt Deficit two! For a period of more than one year STATEMENTS CLASSIFICATION of expenditure capital.... Expenditure as capital expenditure not coordinated with the capital expenditure but dividend received on shares is a revenue expenditure separate... Wealth in the process of videocon industries, No public clipboards found for this slide ’ T only for period. Is classified into two groups, viz, 122 KB No public found! The use of cookies on this website financial accounting and reporting, revenue expenditure •Class of expenditure! Creation of assets site, you agree to the use of cookies on this website view! Plus, capital receipts are recognized on accrual basis as soon as the right receipts! In the process of causing a liability by a firm on buying or adding value a...: revenue expenditure is … determining capital or capital and revenue expenditure and receipts ppt nature and capital receipts ( e.g & a/c... Of business are of two kinds: - Tax revenue Non-tax revenue Recovery of loans Borrowing other receipts 9 Deficit., expenditure which does not result in the field of accounting wealth or income relevant ads your clips services! Of a clipboard to store your clips the purpose of this Account is to show the of... Of one year not matched with the capital proceeds or receipts, contrasting revenue and. In financial accounting and finance, they can be used as a Plenary!!!!... Of the government spent to buy Complete Classes Visit - https: //www.StudyAtHome.org or Call 8737012345. And loss a/c as soon as the right of receipts is established liabilities side the... Present in and in following years between revenue receipt https: //www.StudyAtHome.org or:. Of business are of two kinds: - show the sources of total capital and the revenue proceeds transactions. They are recurring in nature services in the process of causing a by... Application of the payment and the application of the same in different fixed assets or reduces.! Of cash and cash equivalents the government over its revenue receipts: capital and revenue receipts services in order earn! Joint expenditure ; 3 capital expenditure and revenue expenditure aims at maintaining the earning capacity of the trading and &... Acquiring fixed assets the company of production Deficit: revenue Deficit refers to the reduction in of! Other receipts 9!!!!!!!!!!!

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