Following are the main Differences Between capital payments And Revenue payments with Examples.
The non-recurring payments and part of capital expenditure which is paid in cash are called capital payments.
Capital payments include:
- Amount paid for purchase of Assets
- Redemption of share capital and debentures
- Repayment of long drawing by proprietor
- premium paid on purchase of Assets and
- Payments for Goodwill etc
- Capital Receipt and Revenue Receipt.
- Revenue Income and Capital Income.
- Capital Losses And Revenue Losses.
- Deferred Revenue Expenditures.
The recurring payments and part of revenue expenditure which are paid in cash are called revenue payments.
Revenue payments include:
- salary paid
- wages paid
- cash purchases
- payment to creditors
- bills payable paid
- compensation paid for breach of contract for supply of goods
- payment of interest on the bank loan and
- sales tax paid
you are here capital payments And Revenue payments with Examples.