Difference Between Capital Loss And Revenue Loss

Difference Between Capital Loss And Revenue Loss

The main dissimilarities or difference between capital loss and revenue loss can be pointed as follows:

1. Meaning

Capital Loss: Loss occurred while selling fixed properties or capital assets of a company

Revenue Loss: Loss occurred while selling the products and services of a business company

2. What Is It?

Capital Loss: Selling of fixed assets at lower price than the book value and capital assets at lower price than the face value

Revenue Loss: Loss occurred because of less turnover or high operating costs

3. Accounting Treatment

Capital Loss: It is recorded on the assets column of balance sheet

Revenue Loss: It is debit item of trading account and profit and loss account

Also Read

Difference Between Capital Profit And Revenue Profit

4. Sign Of Weakness

Capital Loss: It is not a sign of weakness of the firm

Revenue Loss: It is a sign of weakness of operational activities of the firm

Capital Loss Vs Revenue Loss (Comparison Chart)

Basis For Difference	Capital Loss	Revenue Loss
Introduction	Loss occurred on selling of fixed assets	Loss occurred on selling of products or services
It Is	Selling of assets at lower price	Less turnover
Recorded On	Asset side of balance sheet	Debit side of trading account
Sign Of Weakness ?	No	Yes

I hope this post is helpful to understand the difference between capital loss and revenue loss and to make comparison between them.