PAYMENT:-

A payment is the voluntary tender of money or its equivalent or of things

of value by one party (such as a person or company) to another in exchange
for goods, or services provided by them, or to fulfil a legal obligation. The
party making a payment is commonly called the payer, while the payee is the
party receiving the payment.

Payments can be effected in a number of ways, for example:

 the use of money, cheque, or debit, credit or bank transfers.

 the transfer of anything of value, such as stock, or using barter, the
exchange of one good or service for another.

Types of payments:-

 Cash (bills and change): Cash is one of the most common ways
to pay for purchases. ... 
 Personal Cheque (US check): These are ordered through the buyer's
account. ... 
 Debit Card: Paying with a debit card takes the money directly out of
the buyer's account. ... 
 Credit Card: Credit cards look like debit cards.
CAPITAL EXPENDITURE (CapEx):-
Capital expenditures (CapEx) are funds used by a company to acquire,
upgrade, and maintain physical assets such as property, plants, buildings,
technology, or equipment. CapEx is often used to undertake new projects or
investments by a company.

It is considered a capital expenditure when the asset is newly purchased or

when money is used towards extending the useful life of an existing asset, such
as repairing the roof.

Examples of capital expenditures:-
 Buildings (including subsequent costs that extend the useful life of a
building)
 Computer equipment.
 Office equipment.
 Furniture and fixtures (including the cost of furniture that is
aggregated and treated as a single unit, such as a group of desks)

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REVENUE EXPENDITURE:-
Revenue expenditures are short-term expenses used in the current period or
typically within one year. Revenue expenditures include the expenses required
to meet the ongoing operational costs of running a business, and thus are
essentially the same as operating expenses (OPEX).

Revenue expenditures also include the ordinary repair and maintenance

costs that are necessary to keep an asset in working order without substantially
improving or extending the useful life of the asset. 

Types/Examples of Revenue Expenditures:-

 Salaries and employee wages

 Any overhead expense, such as salaries for the corporate office, which
typically fall under selling, general, and administrative expenses
(SG&A)
 Research and development (R&D)
 Utilities and Rent
 Business travel
 Property taxes

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DEFERRED REVENUE EXPENDITURE:-

Deferred revenue expenditure is an expenditure which is incurred in the

present accounting period but its benefits are incurred in the following or the
future accounting periods. This expenditure might be written off in the same
financial year or over a period of a few years.

Common examples of deferred expenditures include:

 Rent on office space.
 Startup costs.
 Advertising fees.
 Advance payment of insurance coverage.
 An intangible asset cost that is deferred due to amortisation.
 Tangible asset depreciation costs.

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RECEIPT:-
A receipt (also known as a packing list, packing slip, packaging slip, (delivery)
docket, shipping list, delivery list, bill of parcel, manifest or customer receipt) is
a document acknowledging that a person has received money or property
in payment following a sale or other transfer of goods or provision of a service.

A Bureau of Engraving and Printing receipt for $442,340,000 in Federal

Reserve Notes from Comptroller John Skelton Williams, dated 23 July 1915
and signed by Joseph E. Ralph, Director of the BEP.

Receipt types:-
 Sales invoice.
 Purchase invoice.
 Travel invoice.
 Expense invoice.
 Journal.
 Salary.
 VAT summary.
 Tax Return for Self Assessed Taxes

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CAPITAL RECEIPTS:-

Capital receipts are receipts that create liabilities or reduce financial assets.
They also refer to incoming cash flows. Capital receipts can be both non-debt
and debt receipts. Loans from the general public, foreign governments and the
Reserve Bank of India (RBI) form a crucial part of capital receipts.

The Budget estimate of the government's capital receipts for the year 2020-21
was Rs 1,074,306 crore. The revised estimates of capital receipts for the 2019-
20 Budget came at Rs 772,529 crore, while the actuals for the 2018-19 Budget
stood at Rs 763,518 crore.

EXAMPLES OF CAPITAL RECEIPTS:-

 Cash received from sale of fixed assets.

 Amount of loan received by the company from a bank.
 Capital invested in the business by a new partner.
 Consideration received by a company through sale of its license to
produce a well marketed drug to another company.

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REVENUE RECEIPTS:-
Revenue receipts can be defined as those receipts which neither create any
liability nor cause any reduction in the assets of the government. They are
regular and recurring in nature and the government receives them in the
normal course of activities.

These are proceeds of taxes, interest and dividend on government

investment, cess and other receipts for services rendered by the government.
These are current income receipts of the government from all sources.

EXAMPLES OF REVENUE RECEIPTS:-

 Revenue received from sale of goods to customers.

 Income received as interest on a saving accounts.

 Dividend income received from shares of various companies.

 Rental income received by a company.

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Examples of Expenditures and Receipts:-
CHILDREN’S ACADEMY SCHOOL:-
TYPE of Expenditure THINGS that come
or Receipt under
Capital Expenditure Benches, Blackboard,
Computers
Revenue Expenditure Salaries of
Teachers/Staff,
Computers or Lights’
repair costs,
Electricity Bills
Capital Receipts
Revenue Receipts Fees of Students