Capital and Revenue Receipts

Which of the following transactions would be considered to be capital receipts?

• Additional capital introduced by the owner

• Interest on a bank savings account

• Sale of goods

• Money received from a tenant for rent

Miss Taylor owns a pizza business. Which transaction would be considered to be revenue receipts?

• Cash received from the sale of an old pizza oven

• Cash received from the bank as a loan for expansion of the business

• Cash discount received from a supplier of tomato sauce

• Cash received from an insurance claim

Gaven owns a car dealership, which of the following items would be revenue receipt?

• Money received from selling an old office equipment

• The purchase of car parts for the dealership

• Money received from commissions on sale of vehicles

• Rent paid for the premises that is used for the dealership

Which of the following would be capital receipts?

• Purchase of goods for sale in a business

• Purchase of equipment for use in a business

• Sale of stock in a business

• Sale of fixed asset by a business

Miguel is a wholesaler who sells furniture to retailers. Which of the following is a revenue receipt?

• Income received from the sale of furniture

• Income received from the sale of old office equipment

• Capital introduced into the business by the owner

• A loan received from the bank for expansion of the showroom

Mr. Rolle owns a supermarket, which of the following would be capital receipts

• Purchase of dairy items for the store

• Income received from the sale of a freezer

• Cash received from the sale of fruits and vegetables

• Discounts received on meat and fish from his supplier

Miss Griffin owns a bookstore, which of the following would be revenue receipts?

• Cash discount from a supplier of stationery

• Money received from selling an old bookshelf

• Money received from the bank for expansion of the bookstore

• Purchase of new stock from a publisher