Capital and Revenue Receipts

Written by True Tamplin, BSc, CEPF®

Reviewed by Subject Matter Experts

Updated on March 06, 2023

Receipts are the amounts actually received. The receipts of a business are of two kinds:

  • Capital receipts
  • Revenue receipts

Capital Receipts


Capital receipts include the following:

  • Payments into a business either by the proprietor of the business or by shareholders of a company to start a business or increase the capital
  • Receipts of loans from partners, bankers, and private individuals

Capital receipts are shown as liabilities in the balance sheet.


  • Sale of old machinery for $5,000
  • Receipt of a bank loan

Revenue Receipts


Revenue receipts include the following:

  • Amount received on account of some revenue profit

Revenue receipts are shown as an income in the income statement in the year in which they occur.


  • Sale of goods to customers for $1,000
  • Receipt of a fee amounting to $2,000 earned from rendering a service to a client

Capital and Revenue Receipts FAQs

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.