Capital Profit And Revenue Profit Check Out Detailed Difference
Capital and Revenue Profits: While preparing the final accounts, distinction has to be made between capital profits and revenue profits. Revenue profits are earned in the ordinary course of business. They appear in the profit and loss account and are available for distribution as profit, or for creating reserves and funds, or for being used in the business. However, capital profits are those which are earned as a result of selling some fixed assets, or in connection with raising capital for the firm....