Capital Receipt - The capital receipt is a receipt that results in either creation of a liability or reduction in financial assets. Capital receipts are non-recurring in nature. For example - Bank loan (creation of liability), sale of machinery (reduction in financial assets). Revenue Receipt - Revenue receipt is a receipt that neither creates financial assets nor reduces liability. It is recurring in nature. For example - Interest received revenue from sales, etc. Deferred Revenue Receipt - When a corporation gets payment for goods and/or services that have yet to be delivered or completed, it generates deferred revenue. It is also known as unearned revenue. For example - Rent is received in advance. Important PointsAnalysis:In the above-given situation, M/s X Limited has received the compensation of Rs. 5,00,000 for the sale of agricultural land which results in a reduction of financial assets. Conclusion:Since, sale of agricultural land results in a reduction of financial assets, receipt of Rs. 5,00,000 is a capital receipt.