Question

Which of the following is/are revenue receipt?

• A. Receipts from sales of fixed assets.
• B. Fees received for services by Company Secretary.
• C. Interest on loan paid by Company Secretary.
• D. None of the above.

Answer 1

The correct option is B Fees received for services by Company Secretary.

Revenue receipts are receipts that occur routinely. They are realized from day to day business activities of a company and are needed by any business to survive and strive. Revenue receipts are normally received through the sale of stock-in-trade and the provision of services to customers in the ordinary course of business. The effect of revenue receipts is normally shown only in the income statement of the company.

Services provided by company secretary are in the normal course of business, therefore, it is a revenue receipt.