capital and revenue expenditure and receipts ppt to pdf

Capital And Revenue Expenditure And Receipts Ppt To Pdf

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Based on their duration, expenses can be categorised as capital expenditure and revenue expenditure.

Capital vs Revenue

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Thank you! Published by Liani Tanudjaja Modified over 2 years ago. Transactions may be divided into two types according to their nature. Acquiring fixed assets Legal costs of buying building.

For raising capital monies of the business such as brokerage paid for arranging loan, underwriting commission etc. Architects fees for building plans and for supervising construction of buildings:.

Cost of acquiring intangible assets like goodwill, patents, copy rights, trade marks, patterns and designs etc. Addition or extension of assets.

Money spent on installation and erection of plant and machinery and other fixed assets. Interest on loan and capital during the construction period. Money spent to bring a second-hand asset into working condition. Cost of replacing factory building from an old place to a new arid better site. Premium given for a lease. Structural improvements or alterations in fixed assets resulting in an increase in their useful life or profit earning capacity. Cost of issue of shares and debentures certain expenditures are incurred by the companies when share and debentures are issued.

Money received by the sale of fixed assets. Money received on account of capital profit. It is for shorter period of time and the benefit of this expenditure is for one or less than one year. Expenditure incurred by maintaining fixed assets in proper working order i. Expenditure for meeting day to day expenses of carrying on a business. Revenue Receipts include the followings. Money received by the sale of floating assets- by the sale of goods. Money received on account of some revenue profit.

Repair and maintenance expenses incurred on fixed assets. Cost of saleable goods. Depreciation of fixed assets used in the business. Freight, cartage, octroi duty, transportation, insurance paid on saleable goods. Expenditure incurred in the ordinary conduct and administration of business, i.

Carriage paid on merchandises purchased. Old machinery was repaired at cost of Rs. Wages paid for installation of machinery. Amount realized from sale of old furniture. This expenditure is considered as part of cost of machinery, so it is called capital expenditure. When furniture was purchased the cost of furniture consider as capital expenditure, so furniture will be sold proceed consider as capital receipts.

What is Accounting and the purpose of Accounting. Financial Accounting 1 Lecture — 33 Question Following trial balance has been extracted from the books of Javed Furniture Manufacturers on June 30, Thomson, the Star Logo, and South-Western are trademarks used herein under. Financial Statement Trial balance proves the arithmetical accuracy of the business transactions, but it is not the end.

The businessman is interested in. As a Book-Keeper it is important that you can identify and categorise items of business income and expenditure Income business receipts — can either. Assets are things of value.

Capital and Revenue expenditure Capital Expenditure means any expenditure incurred to : 1. Acquire an asset and bring it into working. Similar presentations. Upload Log in. My presentations Profile Feedback Log out. Log in. Auth with social network: Registration Forgot your password? Download presentation. Cancel Download. Presentation is loading. Please wait. Copy to clipboard.

Acquiring fixed assets Legal costs of buying building 6 Capital Transaction Carriage inwards on machinery bought Any other cost needed to get the fixed asset ready for use. Architects fees for building plans and for supervising construction of buildings: 7 Examples of Capital Expenditure Purchase of furniture, motor vehicles, electric motors, office equipment, loose tools and other tangible assets. About project SlidePlayer Terms of Service. Feedback Privacy Policy Feedback. All rights reserved.

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Capital & Revenue T.

Education Planet 28, views. Distinguish between capital and revenue expenditure 2. Yet, it has exempted certain capital receipts from taxation while certain capital receipts have been taken into ambit of capital receipts chargeable as capital gains e. A capital receipt is received in exchange for the source of income. Multiple choice questions MCQs Chhavi sharma.


Revenue and capital Receipts and Revenue and Capital Expenditures - Free download as Powerpoint Presentation .ppt /.pptx), PDF File .pdf), Text File .txt) or.


capital and revenue expenditure presentation

We think you have liked this presentation. If you wish to download it, please recommend it to your friends in any social system. Share buttons are a little bit lower. Thank you! Published by Liani Tanudjaja Modified over 2 years ago.

Revenue and capital receipts are recognized on accrual basis as soon as the right of receipts is established. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Both have benefits for business. The receipts and payments account and income and expenditure account differ from each other on the following grounds:.

About this resource. Capital and revenue items. No-1 to 10 on Capital and Revenue Receipts and Payments.. These are recurring in nature and are allocated to the profit and loss account of the same year.

Difference between Capital Expenditure and Revenue
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4 Comments

  1. Ana L.

    Income Tax is levied on income of assessee and not an every receipt which he receives.

    13.05.2021 at 07:57 Reply
  2. Somer S.

    In general, two types of receipts occur during the course of business.

    14.05.2021 at 10:05 Reply
  3. Robert S.

    Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising.

    17.05.2021 at 07:40 Reply
  4. Myra S.

    Revenue receipts are sales of merchandise, discounts, and commission that affect the operations of the business.

    18.05.2021 at 16:59 Reply

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