What is Deferred Capital Expenditure / Deferred Revenue
Expenditure
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Answer Posted / syed iliyas
Capital expenditure is the expenditure the benefit of it
not end for the curent financial year but it continues for
2, 3, 4-5 years. And this type of expendeture is spends to
videning the business for ex. adding additional assets like
additional machienery to develop the production and
videning the godown space to improve the storage capacity
are the best examples.
And revenue expenditure the expenditure of which benefit
ends for the running financial year like salaries, purchase
of goods for resale and payment of office expences or other
payments for which the company has recieve any service.
Finally all the capital expendeture will goes to the
balance sheet and the reveneu expenditure will goes to
profit and loss account.
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