The following are the explanation of 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 the purchase of Assets.
- Redemption of share capital and debentures.
- Repayment of long drawing by the proprietor.
- premium paid on the 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 the supply of goods.
- payment of interest on the bank loan and.
- sales tax paid.
You are here capital payments And Revenue payments with Examples.