Answer Posted / h.r. sreepada bhagi
In Accounting the terms Capital & Revenue have a broader
meaning than just Owners Equity & Income.
Nature of the transaction may be Capital or Revenue - i.e.
it may be Capital Expenditure, Capital Receipt, Revenue
Expenditure or Revenue Receipt.
Capital Expenditure - Expenditure on Acquiring or Purchasing
Fixed Assets (Capital items)
Capital Receipt - Money Received on the sale or transfer of
Fixed Assets (Capital items)
Revenue Receipt - Money received in the ordinary course of
business from business operations.
Revenue Expenditure - Money spent in the ordinary course of
business to meet normal running expenses of the business.
Capital - The money invested in a business of profession or
any venture to earn profit by utilising the money for the
intended purpose.
Revenue - Simply Income or Receipt of money in the normal
course of operations.
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