Expenditure which are capital in nature and are exhausted 
over the life time of the asset are capitalised to the cost 
of the asset.

Revenue expenditure are those expenditure the effect of 
which are felt immeditaely like expentire incurred for 
salary.

Deffered Revenue expenditure are those which are revenue in 
nature but the effect of which are felt over the period of 
2 to 3 years.

CAPITAL EXPENDITURE:-The nature of this expenditure is Non-
Recurring.

This expenditure should give long term benefit to the 
organization.

EX:-Expenditure on acquisition of fixed assets, Expansions 
of business. E.tc.

Revenue Expenditure:-Recurring in nature.

EX:-Petrol to a van.

Revenue expenditure with an incure the one accounting 
period,and it non recoverable it generated current period. 
eg:salaries,depreciation

Capital expenditure is a income genarated for long term. 
that expenditure create a employment,aqusation of new 
machenery, long term fixed asset.
eg:aquasation of machenery, wages.

Deffered revenue expenditure is a genarated morethan one 
accounting period.generally it expanse 2-5 years.
eg:loss of money out of the business hours.