Revenue receipt -: nither create liability nor reduce asset .
capital receipt-: either create liability or reduce asset
eg market borrowing,disinvestment.

Capital Receipt:
Capital receipts refer to the money received by a company or government entity from sources that are not related to its regular operations. These receipts are generally used for long-term purposes and have an impact on the capital structure of the entity. Capital receipts can be categorized into two main types:

1. Equity Capital:
Equity capital refers to the funds raised by a company through the sale of shares or equity instruments. When a company issues new shares, it receives money in exchange for ownership in the company. This capital can be used for various purposes such as expansion, research and development, or debt repayment.

2. Debt Capital:
Debt capital refers to the funds raised by a company through loans or borrowings. This can include bank loans, debentures, bonds, or other forms of debt instruments. When a company borrows money, it is obligated to repay the principal amount along with interest over a specified period of time.

Revenue Receipt:
Revenue receipts, on the other hand, are the funds received by a company or government entity as a result of its regular operations or activities. These receipts do not have a direct impact on the capital structure and are used for day-to-day expenses or current liabilities. Revenue receipts can be further divided into two main categories:

1. Sales Revenue:
Sales revenue refers to the money received by a company from the sale of goods or services. This is the primary source of revenue for most businesses. Sales revenue is generated when a company sells its products or services to customers and receives payment in return.

2. Non-operating Revenue:
Non-operating revenue includes income from sources other than the core operations of a company. This can include interest earned on investments, rent received from property, dividends from investments in other companies, or any other form of income that is not directly related to the sale of goods or services.

Key Differences:
Here are the key differences between capital receipts and revenue receipts:

1. Purpose: Capital receipts are used for long-term purposes such as expansion, investment, or debt repayment, whereas revenue receipts are used for day-to-day expenses and current liabilities.

2. Impact on Capital Structure: Capital receipts have an impact on the capital structure of a company or entity, as they involve raising funds through equity or debt. Revenue receipts do not affect the capital structure.

3. Source: Capital receipts come from sources outside of regular operations, such as the sale of shares or borrowing. Revenue receipts are generated from the core operations of a company, such as the sale of goods or services.

4. Frequency: Capital receipts are usually infrequent and occur when a company decides to raise funds through equity or debt. Revenue receipts, on the other hand, are generated regularly as a result of ongoing business activities.

5. Accounting Treatment: Capital receipts are recorded in the balance sheet as capital or long-term liabilities, while revenue receipts are recorded in the income statement as revenue or income.

Overall, capital receipts and revenue receipts are two distinct types of receipts that serve different purposes and have different implications for the financial position of a company or entity.