Question

Your are given the various receipts and payments of a hospital. Classify them into capital and revenue. 

a) Consultation fees 

b) Payment of salaries 

c) Conveyance expense 

d) Purchase of medicine 

e) Purchase of surgical instruments

f) Life membership subscription for health plan

Answer 1

Capital

e) Purchase of surgical instruments (expenditure) 

f) Life membership subscription for health plan (receipts)

Revenue 

a) Consultation fees (receipts) 

b) Payment of salaries (payments) 

c) Conveyance expense (payments) 

d) Purchase of medicine (payments)