Define revenue receipts and give examples. How are these receipts treated?
CA Foundation · Accounting · RTP · September 2026
Define revenue receipts and give examples. How are these receipts treated?
Suggested Answer and Working Notes:
Receipts which are obtained in course of normal business activities are revenue receipts. Example receipts from sale of goods or services, interest income etc. Revenue receipts should not be equated with the actual cash receipts. Revenue receipts are credited to the Profit and Loss Account.
Topics: Theoretical Framework
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