2. OCR Level 3
Cambridge Technicals
in Business
Unit 4: Business Accounting
Capital and Revenue

3. Capital Income
The money used to set up a business – initial
investment - sole trader/partnership
Share capital –
Private and Public
limited companies
Further investment
into the business
by owners
Loans received
from a third party

4. Revenue Income
Money received from normal business
activity – sales revenue
Rent
received
Commission
received

5. Capital Expenditure
Expenditure incurred on the purchase,
Capital expenditure
alteration or improvement of fixed assets
includes the following:
Fixed assets - items
that will be used in the
business longer than
one year
Improvement to fixed
assets – not repair
Legal costs of
buying property

6. Revenue Expenditure
Expenditure incurred on running expenses.
Running expenses – costs that are incurred in the
running of the business which are not directly related
to sales. These would include:
Rent, rates, interest
payments on a loan
Utility bills – gas,
water, electricity
Running costs of
vehicles – petrol

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