Answer to Question #187838 in Accounting for DIPALI PATEL

Question

Love Doddle is a gifting enterprise of Ms. Dorati. The enterprise generates inflows by 

arranging gift hampers for the customer's loved ones. The inflows arises from the sale of 

gift hampers Rs 505000 and from bank interest, dividend receipt Rs4200. Ms. Dorati is 

confused on how to record these inflows. She would like to understand from you about 

the concepts Revenue from operation and other income, so that she can record the 

information so as to prepare the profit and loss statement of the enterprise. Define, share 

examples, and elaborate on your understanding towards the terms Revenue from 

Operation and Other Income

 

Answer 1

Revenue from operations is income generated from the normal operations of the business for example; for Love Doddle revenue from operations is the  inflows that arise from the sale of 

gift hampers Rs 505000.

Other income is is income generated from other sources not related to the primary activity of the business. It may include interest income, gains on the sale of assets, and gains from foreign exchange transactions. In the case of Love Doddle, other income is the bank interest, dividend receipt Rs4200.