Revenue receipts refer to the regular income or earnings generated by a business or government through its day-to-day operational activities. These receipts are recurring in nature and directly impact the profit and loss of the entity. They are considered as the current income receipts for the government from all sources and are used to meet the daily expenses of the business. Revenue receipts neither create any liability nor decrease any asset, and they are recorded on the credit side of the Profit and Loss Account.
Some examples of revenue receipts include the proceeds from the sale of goods and services, rent, discounts, interest, commissions, dividends, and other income generated from the core business operations. These receipts are essential for the survival of a business, as they provide the necessary cash inflow to sustain the business in the market.
In summary, revenue receipts are the income earned from the regular operational activities of a business or government, and they play a crucial role in determining the financial performance and sustainability of the entity.
