There are two types of sources of income in a business. First, is capital income, and second is revenue income. There is a difference between the income sources of business.
![difference between capital income and revenue income difference between capital income and revenue income](https://googlesir.com/wp-content/uploads/2018/01/15155950256171-1-1024x576.jpg)
The following are the main differences between capital income and revenue income with examples.
What is Capital Income?
The income that arises from non-recurring transactions by certain or certain events is called capital income.
Capital Income Examples:
- Price received on investments in small saving schemes.
- The premium on letting out shops or houses.
- Bonus shares on investment.
- Hidden treasures were found in the dismantling of the old house.
There are also some capital losses and revenue losses in a business.
What is Revenue Income?
Income arising from Recurring transactions in the ordinary course of business is called revenue income.
Revenue Income Examples:
- Commission received.
- Discount received.
- Interest from debtors.
- Fees and room rent from patients.
- Donations and charities received by the charitable institution.
- Fright received by transport companies.
- Interest dividends and bonus shares received by the investment company.
Both income sources of a running business have similarities and differences.