Capital Losses And Revenue Losses with Examples (Explained)

Following are the main Differences Between Capital Losses And Revenue losses with Examples.

Capital Losses

Capital losses are those losses that do not arise during the Normal course of Business. 

The capital loss includes:

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.

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Revenue Losses

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

The Revenue loss includes:

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 depreciable asset.
6. Provision for doubtful debts and loss of goods due to the carelessness of the employee.

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