When the income is earned in the course of carrying on a business, that income is called as revenue receipt or when the money is received in due course of routine business of the business firm, shall be called as revenue receipt. For Example:-

  1. All the receipts from sales of goods.
  2. Interest received on deposits.
  3. Dividend received.
  4. Rent received.
  5. Commission received.
  6. Royalties etc. received.

Revenue receipts include all cash inflow or amount receivables in respect of the goods sold or service rendered to the customers. Revenue receipts are also called  gross income of the business firm. All the revenue receipts are shown in credit side of trading and profit and loss account since these receipts relate to the income of business firm. Revenue receipts directly affect the profit of the business firm. It should be noted that the amount of revenue receipt is not shown in the balance sheet otherwise it will show the wrong position of the business results.

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