• Distinguish between:

1. Revenue Receipt VS. Capital Receipt

	Revenue Receipt	Capital Receipt
1	RR relates to business activity	CR relates to financing activity.
2	Amt. received need not be returned / refunded	Amt. received may be returned back
3	It is recurring in nature.	It is non-recurring in nature.
4	RR of current year is shown as income in P & L A/c & RR of future period is treated as Liability	It is shown as Liability in Balance Sheet.
5	Ex.: Sale of goods, fees, interest, dividend, royalty reced.	Ex. : Capital from owner, loans from Bank etc.

2: Capital Expenditure VS. Revenue Expenditure

	Capital Expenditure	Revenue Expenditure
1.	It pertains to investing activity	It pertains to business activity
2.	It helps to set up and develop a business	It helps to run a business
3.	It helps to acquire new asset.	It helps to maintain an asset.