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Difference Between Revenue & Capital Expenditure Give an
Example of each ?
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Answer / h.r. sreepada bhagi
Revenue Expenditure - Amount of expense relating to a
particular Accounting/Financial year - Eg. Stationery
purchased, Staff Welfare Expenses, etc. These expenses will
be charged off in the Profit & Loss Account in the same year.
Capital Expenditure - Amount of money spent on acquiring an
asset - Eg. Purchase of Land, Furniture, Computer, etc.)
Since the benefit of these assets is spread over several
years, these expenditure will be charged off over the period
of the life of the asset (As per the method & rates
mentioned in the applicable Law in any country) in the name
of depreciation.
| Is This Answer Correct ? | 13 Yes | 0 No |
Answer / pravin kamble
Revenue :- Revenue is income that a company receives from
its normal business activity usually from sale of goods or
services to the customers. In other way this is called as
turnover.
Capital Expenditure :- Capital expendituren creats future
benifits to the company. This expenses incured when a
busiess spends money to fixed assets.
| Is This Answer Correct ? | 6 Yes | 3 No |
Answer / chittibabu
expenses incurred for run business(running or operative
exps) is called revenue expenses which are charges to p&l
a/c dr side.
ex: salaries,rent,stationary and office maintanace etc.
expenses incurred for equire fixed assets which will shown
in B/s at assets side.
ex:purchase of land, building, furniture etc.,
| Is This Answer Correct ? | 3 Yes | 1 No |
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