Notes on lesson on Capital and Revenue Concept | kullabs.com

Capital and Revenue Concept

Notes

Concept of Capital and Revenue

When the benefit of expenditure is available over a number of years, it is considered as capital expenditure whereas when the benefit of expenditures is likely to be available foe less than one year, its is treated as revenue expense.

Capital and Revenue Receipt, Gain, Loss and Reserve

Capital receipt are the amount received from the owner as capital, loan from outsiders and proceeds from the sale fixed assets whereas revenue receipts are the receipt or incomes that arise from day to day business activities. This note has information about capital and revenue receipts, gains losses and reserves.