Capital payments and Revenue payments With Examples (Explained)

The following are the explanation of capital payments And Revenue payments with Examples.

Capital Payments

The non-recurring payments and part of capital expenditure which is paid in cash are called capital payments.

Capital payments include:

1. Amount paid for the purchase of Assets.
2. Redemption of share capital and debentures.
3. Repayment of long drawing by the proprietor.
4. premium paid on the purchase of Assets and.
5. Payments for Goodwill etc.

Related:

• Capital Receipt and Revenue Receipt.
• Revenue Income and Capital Income.
• Capital Losses And Revenue Losses.
• Deferred Revenue Expenditures.

Revenue Payments

The recurring payments and part of revenue expenditure which are paid in cash are called revenue payments.

Revenue payments include:

1. salary paid.
2. wages paid.
3. cash purchases.
4. payment to creditors.
5. bills payable paid.
6. compensation paid for breach of contract for the supply of goods.
7. payment of interest on the bank loan and.
8. sales tax paid.

Related:

• Capital Profits And Revenue Profits.
• Capital Expenditures and Revenue Expenditures.

You are here capital payments And Revenue payments with Examples.

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