• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Googlesir Logo

Googlesir

  • Home
  • Entrepreneurship
  • Employee Guide
  • Marketing and Sales
  • Space
  • Investment & Earning

Examples of Capital Loss and Revenue Loss (Explained)

Last Modified: 5 February, 2023 1 Comment

A business is always trying to get good profits at the end of the year but it depends on many factors. So many times this will negatively affect the business and incurs losses for the business. So there are two types of losses broadly calculated, first is a capital loss and second is a revenue loss.

examples of capital loss and revenue loss
examples of capital loss and revenue loss

Following are the main differences between capital loss and revenue loss.

What are Capital Losses?

Capital losses are those losses that do not arise during the normal course of business. 

The Capital Loss Examples:

  1. Accidental loss of fixed assets.
  2. The issue of securities at discount.
  3. Redemption of securities at the premium.
  4. Embezzlement of the case by the unauthorized person.
  5. Obsolescence losses. losses by flood and earthquake etc.

There are also major differences between capital profits and revenue profits.

What are Revenue Losses?

Revenue Losses Arise from the normal course of business by selling goods or by providing services less than their cost price on inventory value less than its cost.

The Revenue Loss Examples:

  1. Embezzlement of cash by the cashier.
  2. Embezzlement of goods by the storekeeper.
  3. Bad debts.
  4. A loss by fire of unsecured goods.
  5. Depreciation loss on sale of a depreciable asset.
  6. Provision for doubtful debts and loss of goods due to the carelessness of the employee.

But the capital receipt and revenue receipt are important parts of any business.

Thus, profits and losses are part of a business’s operations. So it’s very important to know how capital losses and revenue losses affect us.

Share Now:

  • Share
  • WhatsApp
  • Tweet

1 Comment

Reader Interactions

Comments

  1. Suresh says

    September 28, 2019 at 3:51 AM

    Inability to access the deposit in a bank going into liquidation can be a capital loss and loss of interest thereon is revenue loss …is it ok?
    2. Inability to compute capital loss on shares which carry negative or zero valuation can be accounted notionally for reporting and carry forward loss. Is it permissible?
    Thanks

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

More to See

challenges of doing personal selling

15 Major Challenges of Doing Personal Selling: Explained

objectives of personal selling

16 Main Objectives of Personal Selling: A Comprehensive Guide

importance of personal selling to society

17 Crucial Importance of Personal Selling to Society

benefits of using pricing skimming for business

21 Benefits of Using Price Skimming for Business: Explained

benefits of using loss leader pricing

21 Benefits of Using Loss Leader Pricing for Your Business

benefits of using dynamic pricing for business

21 Benefits of Using Dynamic Pricing for Your Business

benefits of using cost plus pricing strategy

Top 21 Benefits of Using the Cost-Plus Pricing Strategy

E-mail Newsletter

Footer

Search Here

Know Us

  • Home
  • Blogs
  • About US
  • Contact Us
  • Privacy Policy

Goals to Achieve

  • 101 Business Lessons from Bhagavad Gita (Every Entrepreneur Should Know)
  • 17 Roles of Creativity and Innovation in Entrepreneurship
  • 51 Different Types of Green Entrepreneurship: For a Sustainable Future
  • 101 Small Business Ideas from Home for Ladies
  • Why My Supermarket Business is Not Growing (14 Reasons)
  • 25 Key Benefits of Having a Business Plan (With Examples)

© 2023 Copyright - Googlesir.com