Railway Accounts Department Examinations

Showing posts with label Revenue Vs Earnings. Show all posts
Showing posts with label Revenue Vs Earnings. Show all posts

Tuesday, July 28, 2020

Revenue vs Earnings




In Indian Railways, we use normally the word Earnings instead of Revenue.  Now we will check the difference between the two and is it correct to use the word Revenue in place of Earnings or not. 

Revenue minus Expenditure is equal to Earnings.

The difference between revenue and earnings is that while revenue tracks the total amount of money made in sales, earnings reflect the portion of the revenue the company keeps in profit after every expense is paid.

So Using the word Earnings so far in lieu of Revenue is incorrect.  Because Earnings means profits/surplus after deducting the expenditure from Revenue.  

So, here after

Abstract X -  Coaching Revenue

Abstract Y  -  Goods Revenue

Abstract Z - Sundry Revenue

It is high time to modify the Revised Accounting Classification in Finance Code Volume Two accordingly.