Accounting Principle

Difference between Capital Receipt and Revenue Receipt Capital Receipts do not regularly happen, as it is non-recurring and uneven. But, revenue receipts do not happen…

Revenue receipt is the receipt of income which is earned during the normal course of business. It is recurring in nature. It refers to those…

Revenue expenditures consist of those expenditures, which are incurred in the normal course of business. It is an amount that is expended immediately—thereby being matched…

Revenue Transactions are a transaction that is generally of a short-term nature and is only expected to benefit the current period. Revenue transactions appear in…

Capital Transactions The business transactions, which provide advantages or supply services to the business apprehension for more than one year or one operating sequence of…

Capital expenditure consists of those expenditures, the advantage of which is carried over to quite a few accounting periods. In other words the advantage of…

Capital receipt is one which is invested in the business for a long period. It includes long term loans obtained from others and any amount…

Stages of Rectification The stage in which rectification is done depends on identification or locating the error. Rectification of errors may be explained in two…

Basic Principles for Rectification of Errors Correcting the errors that has occurred is called Rectification. Proper entry is conceded or appropriate descriptive note is written…

Rectification of Errors Correction of errors in the books of financial records is not finished by erasing, rewriting or striking the figures which are incorrect.…