Question

What do you mean by revenue nature and capital nature transactions?

Answer 1

Dear Student


Capital nature transactions are those transactions are directly related to the Fixed or Non Current Assets or Liabilities of the Organisation . These are mainly those transactions because of which our organisation is affected for long term Like Purchase of Fixed assets , Sale of Fixed assets , Issue of Shares etc. This transactions are done mainly to Change or Increase the Operating efficiency of the firm , These transactions do not occur Frequently.

Whereas

Revenue nature transactions are those transactions which are done mainly to maintain the business in day to day basis , this expenses are of short term and usually related to the Operations of the business. Like Purchase of Goods , Sale of Goods , Incomes , Expenses etc. These transactions occur frequently on day to day basis in the organisation.


Regards