13 Examples of Capital Payments and Revenue Payments (Explained)

There are two types of payments are happing in a business firm. First, revenue payments, and second, capital payments.

The following is the explanation of capital payments and revenue payments with examples.

What are Capital Payments?

The non-recurring payments and part of capital expenditure that is paid in cash are called capital payments.

Capital payments examples:

1. Amount paid for the purchase of Assets.
2. Redemption of share capital and debentures.
3. Repayment of long drawing by the proprietor.
4. Premium paid on the purchase of Assets and.
5. Payments for Goodwill etc.

Revenue receipts and capital receipts are also important side parts of it.

What are Revenue Payments?

The recurring payments and part of revenue expenditure that is paid in cash are called revenue payments.

Revenue payments examples:

1. Salary paid.
2. Wages paid.
3. Cash purchases.
4. Payment to creditors.
5. Bills payable paid.
6. Compensation paid for breach of contract for the supply of goods.
7. Payment of interest on the bank loan and.
8. Sales tax paid.

Analyzing your capital and revenue payments is a very good way to understand your financial payments in the final accounts of the business firm.